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Gixene

06/10/13 2:31 PM

#3022 RE: cintrix #3017

cintrix, as a growth investor. To make sure we are clear. I believe I'm looking for the PPS the stock should be trading at based on just it's net worth. For example...

Assets $100 - Liabilities $30 = Net Worth $70

If this company were to close down today, it would be worth $70.

Net Worth $70 / Outstanding Shares 5

This company is valued at $14 a share, but the current price per share is $7. Making this company under valued, by $7

Am I correct on this part? This is Market value?

So to follow up on your response. In this formula, I need to use long-term assets so I also need to use long-term liabilities. I have been using both long term numbers and haven't found an under valued stock.




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Gixene

06/10/13 2:40 PM

#3023 RE: cintrix #3017

cintrix, I meant value investor, not growth. Sorry for any confusion.