I’ve been investing for about 9 months now. Over the past few months I’ve been trying to learn how to make evaluations on my own to find companies I believe to be undervalued. My process has been to look at a company’s market cap. And to compare it to its annual revenue and growth. I also add the total assets of the company and compare that figure to market cap. To see if I believe the current share price is attractive. If the company’s market cap is close to the annual revenue + assets and the growth looks like it could push the company beyond its current market cap, I invest.
These are pretty easy stats to pull up and understand so I’m asking for advice from more seasoned investors on how I should evaluate a company and if my evaluation method even makes sense as I could be totally missing something as a few months ago I didn’t even know what market cap meant.
Thanks for any and all criticism and feedback!
Submitted August 30, 2021 at 05:49PM by BooBeef https://ift.tt/3ypObr6
