Advanced Fundamental Analysis - Valuation
3 things to keep in mind when valuing a company
01:02 Mins Read
Here’s a practical guide with some pointers to help you value a company the right way.
3 things to keep in mind when valuing a company Here's a quick checklist. First, factor in the company’s earnings history And its potential for growth in the future. This helps you assess where the company is headed. Secondly, keep in mind that the assets and liabilities of a company matter. Look into the kind of assets the company has. Check if the assets outweigh the liabilities. And consider the level of debt in the company. Lastly, remember that there are key factors outside the business too Like the nature of the industry The status of the economy And the manner in which similar companies are valued. It’s important to look at all these factors when you’re valuing a company. Well, this brings our module on valuation to a close. But there’s always more to learn. And to check out what else is in store, head to the next module in Smart Money.