I was wondering how you calculate the $ value per share of a stock based on free cash.
For example, the other day I read about a company that has 60 million in cash.
Its market cap is 87 000 000
Is this how they calculate it or am I way off base.
87 000 000 (market cap) / 1.23 (current share price)
= 70 731 707 (Num of shares)
60 000 000 (Free cash) / 70 731 707 (Num of shares)
= 85 cents
Therfore the company has 60 000 000 free cash which equals to 85c per share
And if this is the case then the current share price of $1.23 is worth $2.08 and is trading at a heavy discount.