Tag Archives: profit growth

Evaluating Facebook Further

Here is a video I recorded to show you other ways you can evaluate a stock on MSN: The rules of thumb I use to evaluate whether a stock would be one I want to buy are as follows: Cash Position – Current ratio greater than 1 Current ratio is how much cash a company… Read More »

How Do You Value A Company To Buy?

The short answer is discounted present value of future earnings (profits). You can do that in two formulas within a spreadsheet… However, let’s understand it from a basic pretend stock. Acme Widgets earns $5 per share per year. They have earned $5 per share for the past 5 years and are expecting $5 per share… Read More »