I listened to a guy on the ASX podcast:
(Sorry, can't post the link here, I haven't done enough posts at aussie stock forums. It was by Roger Montgomery, Managing Director, and was recorded on Wed 3 June 2009... it's on the ASX podcast page.)
He was saying how valuing a company is more important than movement in its share price... as a beginner I found what he said easy to follow.
Something that sticks in my memory is:
(Return on equity / desired return) x equity per share = true value of share price.
What does the aussie stock forum think?
And I had a look around for information on return on equity for some blue chip shares but couldn't find it... where could I find such info? As I understand it, it's the net profit divided by market capitalisation... right?
Ta as always!
(Sorry, can't post the link here, I haven't done enough posts at aussie stock forums. It was by Roger Montgomery, Managing Director, and was recorded on Wed 3 June 2009... it's on the ASX podcast page.)
He was saying how valuing a company is more important than movement in its share price... as a beginner I found what he said easy to follow.
Something that sticks in my memory is:
(Return on equity / desired return) x equity per share = true value of share price.
What does the aussie stock forum think?
And I had a look around for information on return on equity for some blue chip shares but couldn't find it... where could I find such info? As I understand it, it's the net profit divided by market capitalisation... right?
Ta as always!