Hey I am on Medial • 7m
Only two things sustain a stock price 1. Future Earnings/Cash flow Power(going concern): This tells a company's ability to generate sustainable profits or free cash flow. Whether you're analysing a high-growth tech company or a high dividend-paying industrial giant, the potential for future earnings and cash flow dictates stock's trajectory. 2. Residual asset value (If the business ceases operations) If a company were to shut down tomorrow, what tangible value could be extracted from its assets after liabilities? This provides a safety net for the investor. First point determines how high a stock can go. Second point puts a floor to the stock price. Price also is effected by things like: a. Market sentiments b. Macroeconomic factors c. Compititive positioning d. Management quality e. Liquidity and demand But, all these will eventually have to lead to future earnings potential and/or residual asset value for the price to sustain.
Daily Learnings... • 1y
Commonly used Jargons 1)Bull Market:-If you expect the stock prices to go up,you are bullish on the stock price. 2)Bear Market:-If you expect the stock prices to go down,you are bearish on the stock price. 3)Trend:-The term ‘trend’ usually refers
See MoreTrying to do better • 1m
Exploring Share Buybacks: What are they and why do companies do them? A share buyback (also known as a share repurchase) is when a company buys back its own outstanding stock shares from the open market. This action reduces the total number of share
See MoreSemi qualified CMA (... • 3m
Hey founder👋 Ever wondered how startups figure out their worth? Let me break down the Discounted Cash Flow (DCF) method—it’s easy! What’s DCF? It calculates a business’s current value by predicting its future cash flows and adjusting for risk usin
See MoreWork on your ideas • 1y
Nvidia CEO Jensen Huang's net worth has surged from $3 billion to $90 billion in the past five years, primarily due to the soaring value of Nvidia shares. On Thursday, Nvidia's stock reached a record high, boosting Huang's stake value by $7.7 billio
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