valuation

Discussion in 'Fundamental Analysis' started by cmlee, Oct 23, 2005.

  1. cmlee

    cmlee Member

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    hi,
    how can we know that the current stock price is lower than the company's actual value?
    thanks
     
  2. prsrivastav

    prsrivastav Member

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    i came to know a formula that is helpful to know the stock price.from this you can judge the current price are overvalued or under valued.for this you require current eps and previous eps
    say current eps=EPS1
    say previous eps=EPS2

    Then "stock price=EPS1 x (100 x (EPS1-EPS2)/EPS2)"
     
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