043 Fundamental Analysis
Is a way to calculate the value of a company.
The value is the sum of:
- Book value: the total value of the company's assets if the company were liquidated now.
- Total assets - intangible assets (patents, goodwill) and liabilities
- Future returns: Intrinsic value
- Future income generated by the asset, discounting it to the present value:
Intrinsic_value = ∞∑i = 1(dividend⋅γ)i
What's a company worth?
- value = number of shares outstanding * price per share = market cap
- Market price