Hey I am on Medialย โขย 1y
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...ย โขย 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 โtrendโ usually refers
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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
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Adjuva Legalย โขย 7m
Profit vs. Cash Flow ๐ธ: The Silent Startup Killer! ๐ Heads up, founders! You can be 'profitable' on paper but still go bankrupt. Why? Profit: Revenue - Expenses (often accrual-based). Cash Flow: Actual cash IN โก๏ธ - Actual cash OUT โฌ ๏ธ. Problem:
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Tapzo, once an ambitious all-in-one app, failed from frequent pivots that eroded trust and an unclear value proposition; persistent negative cash flow and inability to raise follow-on funding; neglect of customer feedback and prioritizing fame over u
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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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So how do you calculate your companyโs valuation? Hereโs the simplest way to think about it: 1. Forecast Future Earnings: Start with what your business makes now and apply a growth rate. Example: Year 1: $100K โ Year 2: $120K โ Year 3: $144K. 2.
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