What is a Share Price?

What is a Share Price? 03 Jun 2008 09:59

Great question.. Glad you asked! When it was asked of me a while back I gave a fairly mundane answer: "Whatever someone is prepared to pay for it" .. little did I know there was so much more involved! :)

Turns out when it comes to valuing companies, its a rather scientific exercise and one that often leads to quite a lot of effort put in to understanding a companies background, revenues, potential for growth and profitability.

Recently, we were involved with launching the new Valuecruncher site. Valuecruncher is a local company who is well regarded for their work in working out accurate company valuations. The site itself provides an online tool which produces the same type of valuations for publicly traded companies by using a discounted cashflow model.

If you are into stocks in any way or simply looking to answer my original question then give it a look and tell your friends.. the best way to get started is to dive in to changing an existing valuation, maybe start with Microsoft, Apple and Google :)

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