Forager Introduction to Investing: How to Value a Share

The value of a share is the present value of all of the future cashflows its owner is going to receive. On that, finance students, broker analysts and value investors agree. So why do we see people talking about PE ratios, price-to-book ratios and a wide range of other valuation metrics? In this fourth installment of the Forager Introduction to Investing Series, Gareth Brown and I discuss how and when these metrics can be useful short cuts. Most importantly, we explain that you need to understand a business before you can even begin to value it.


Steve Johnson
Founder & Chief Investment Officer
Forager

Steve began Forager Funds in 2009, and now manages approximately $350m across two funds. Offering a listed Australian Shares Fund (FOR) and an unlisted International Shares Fund, Steve focuses on long-term investing in undervalued companies.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment