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Sunday, 06/09/2013 3:00:53 PM

Sunday, June 09, 2013 3:00:53 PM

Post# of 90887
Good afternoon! I am novice when it comes to investing. I was wondering if someone could help me on the subject of book value? After using the formula on over 25 stocks. I realized that I may not be using the formula correctly. The formula was telling me all of the stocks were extremely overvalued. I believe problem might be factoring assets and liabilities.

I got this formula from Investopedia. The formula I have is...

(Assets) – (Liabilities) = (Net Worth)

(Net Worth) / (Shares Outstanding) = (Book Value)

It wasn't clear weather it should be current and/or long term assets and liabilities. I have been factoring both current and long term.

Thanks, Gulley

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