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How to find the value of a stock?

To find the value of a stock what are the mathematical formulas used and what are the assumptions?

  • To find the value of a stock what are the mathematical formulas used and what are the assumptions?

  • Answer:

    The assumptions are what ever you think the value is vs the person selling the shares. It's called a "stock market" because.... it's a market place selling stock. In short: Supply & Demand determine the price.

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Huh? There are no assumptions if you check the price when the market is open. There is a bid and an ask price. The difference is usually trivial. Take the share price times the number of shares and Bingo! You got it.

No formula will be able to determine the true value of a stock. If someone tells you it can be done that you are in for a shocking surprise. Knowing the true value of a stock is meaningless because prices are determine by the market and not by math. What you should do is to educate yourself on how to read stock charts.

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