Question
$15.00 What is the right price for stock...
Q:
Need help with Finance question.
Here is the question:
What is the right price for a stock? Is it book value, liquidation value or simply its market price at a given moment of time? Would you value a privately-owned company where there is no market value differently than a publicly owned company where there is a market price every day? Is there a difference between "price" and "value."
Please provide detailed response for clarity and understanding.
The answer is book value, you should be satisfied with this answer.
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- Posted on Nov 09, 2010 at 1:03:28PM
A:
Preview: ... ion value of the shares, it is a proxy for it. In many cases, stocks can and do trade at or below book value. If the company's balance sheet is not upside-down and its business is not broken, a low price/BVPS ratio can ...
The full tutorial is about 188 words long .