The Math of Intrinsic Value: Theory behind every stock price - Softcover

Jaganathan, Logeshkumar

Softcover

ISBN 10: 1701729709 ISBN 13: 9781701729704

Publisher: Independently published, 2019

Synopsis

This book explains the mathematical equation behind the Stock Price (business value) based on key fundamental factors of business - Present Earning (CF), risk associated with Present Earning (r), Growth (possibility of reinvestment gain) and risk-free interest rate (i). One can see all these essential factors to value a business in a quantifiable form in this intrinsic value equation. Author has done an extensive research on various business valuation methods (for the past ten years) and arrived his own conclusions. The approach described in this book to value a business is unique and entirely different from the traditional business valuation methods of using PE ratio, Price to book value, dividend discounted cash flow calculation etc... Further, the author has explained it in detail why the intrinsic value of business is always an ‘opportunity cost’ and he explains how the price paid for purchasing a business is justified from a private owner point of view (quite often very high price corresponding to the present earning of the business). Note: A download link is provided inside this book for user to download an excel file which is critical to understand many part of this book, so please download and keep open the file while you reading this book.

Edition details

• Publisher: Independently published
• Publication date: 2019
• Language: English
• ISBN 10: 1701729709
• ISBN 13: 9781701729704
• Binding: Paperback
• Number of pages: 33