A business can be valued by capitaling its earnings stream, Ask an Expert

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A business can be valued by capitaling its earnings stream. how might you use the same idea to value securities, especially the stock of large publicly held companies? Is there a way to calculate a value which could be compared to the stock's market price that would tell an investor whether it's a good buy? (if the market price is lower than the calculated value, the stock is a bargain.) what financial figure associated with shares of stock might be used in the calculation?

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Category:- Basic Finance
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