Post all the queries about fundamental analysis here.
how to calculate book value
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Hi most fundamental analysis is done using financial results and other such reports. But the problem I face is that most reports and press releases are lagging in nature . I mean the results are declared months after a quarter ends, so in such a case how to select a stock , for example I wish to invest on 1st April but the latest quarter ended march results have not yet been declared . So I can’t calculate any ratios for the latest quarter , so shall I wait to invest until the results come out. How do the professionals handle this.
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First of all we have to understand what is book value, book value in simple words calculate the value of company in book.
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What inference can be drawn if there Buyers>Sellers in a stock? But stock price has been in a small range for 1 month.
To calculate the book value of a company, use the formula:
Book Value=Total Assets−Total Liabilities
For a share, it is:
Book Value per Share=Book Value / Total Outstanding Shares
These values are typically found on the company’s balance sheet.