Question

Stock Value and Street Opinion, what is it mean when evaluating finances for a company that you plan to invest in. Just kind of give me as much information as you could. thanks!

Answer 1

Practically we see various terms in the financial market, in those terms we found trems ‘Stock price’ and ‘Stock value’. So before making investment in any company a prospective investor must be aware about the ‘Stock value’ because without knowing value of stock proper decision can not be taken. Hence proper knowledge about stock value is desirable before making investment decision in any company. It also helps in evaluating the finances for the company.

Thus let’s know something in detail about ‘Stock value’.

Stock value refers to the intrinsic value of the stock which is based on various factors of performance of the company in present time and in past time. Apart from this better future estimations & chances of better growths also play a key role in affecting value of stock.

Hence we can say that stock value or value of stock is diferent from price of the stock because price of stock refers to the price at which a stock is being traded for a specific point of time whereas stock value is much comprehensive term. Stock value always provides much detailed information about the stock of a particular company in compare to price of the stock.

Apart from this stock value is determined & affected by following factors;

1. Past earnings, current earnings and future expected earnings.

2. Market share of the company.

3. Trend of past performance of the company.

4. Chances of future growths.

5. Potential and current competitors.

6. Mission & vision of the company.

7. Strengths & weakness of the company etc.