VIVALUATION OF STOCKS, SECURITIES
Stock valuation is one of the important steps of a joint stock company when it wants to offer shares, raise capital and increase its influence in the market. For Investors, stock valuation helps investors know which stocks are worth buying and have the greatest potential for return.
Stock estimation allows investors to compare and contrast stock prices in the market to see if stocks in the market are undervalued or undervalued, thereby helping investors make informed decisions. the right investment decision.
- Method of valuation of securities shares.
- The property method.
- Discounted cash flow method of the enterprise.
- Average ratio method.
- Transaction price method.
- On the basis of receiving a certificate of valuation of the enterprise before the enterprise conducts its initial publicity on the stock exchange (IPO), investors can rely on it to make the right investment decision right.
- Can estimate stock price with many methods. The most common method is to estimate the stock price according to the expected dividend.
- The price of the stock can be considered as the present value of the future earnings from the stock, including dividends
Notes on the stock valuation formula
Before going to the detailed section on stock valuation formulas, investors should pay attention to the following:
There is no single, universal formula for valuing all stocks or companies.
Because: Each type of business, each business cycle, each macro condition, future orientation, internal resources of the enterprise, and investor capacity give a different value. And sometimes there are businesses that just cant be valued – stay away!
Thats why, a beginner investor in fundamental analysis or reading this book is very prone to confusion among the great masters, each with a different valuation; accompanied by a multitude of philosophies and standards for pricing.
Buffett: "Its an illusion to think that you can value all the companies."
However, we can choose each segment that is suitable for us to price. Just as we cannot judge a fish by its ability to climb a tree. Pele, Messi, Ronaldo are valued based on their ability to kick the ball, not based on their ability to play basketball or tennis.
So when valuing, we cant give results based on P/E, P/B, growth rate, ROA, ROE, discounted cash flow.
If it were that simple, perhaps, people who study economics, finance, or study math would be invincible; but thats not really the case. Many well-known value investors from the fields of Medicine, Philosophy, Chemistry, General or just graduated 12/12... are master value investors, I can name a few famous investors in surname number.
So stock valuation is not necessarily you know the valuation of all stocks, just choose 1 or a few segments to play, you will have fish to eat for a lifetime.
For new investors, instead of trying to make money by investing in stocks, invest in yourself.
Methods/formulas for stock valuation.
- Valuation of shares using the P/E method.
- Valuation of shares using the P/B method.
- Stock valuation using the dividend method, valuation using the discounted dividend stream method.
- Valuation of shares using the discounted cash flow method.
- Valuation of shares by EV/EBIT, & EV/EBITDA method.
- Valuation of shares using the P/S method
- Valuation of shares using the PEG . method
- Valuation according to the method of Benjamin Grahams formula
- The stock valuation formula Peter Lynch & John Neff uses – a combination of dividends, growth & P/E
- Enterprise evaluation methods such as ROE index, ROA index, Debt, Inventory, receivables, products, competitive advantage...
STOCK VALUATION SERVICE PROVIDER
Hoang Quan Appraisal (HQA) is one of the professional units in determining the price of the right to buy additional shares issued to the Corporations. The determination of the price of the option to buy additional shares is done for both companies listed on the stock exchange and those not listed on the stock exchange.
For enterprises whose shares have been listed on the stock exchange, it is relatively easy to determine the stock trading price at the ex-dividend date. The trading price of this stock can be found on the official pages of the Hanoi Stock Exchange (HNX) or the Ho Chi Minh Stock Exchange (HSX). The closing price of the ex-dividend shares, the percentage of additional shares issued, and the additional issue price are the main factors to determine the price of the option to buy additional shares.
