By author Morgan Jassen on w̶i̶e̶l̶d̶s̶i̶l̶v̶e̶r̶.̶c̶o̶m̶ 2021-04-10 0749Use What to Judge the Value of a Company?
The unspoken and unaswered question was, "what to use to judge the value of a company?" Then I heard this podcast which answered the question. "The Rich Dad Radio Show" [2021-04-07] https://www.richdad.com/podcasts/richard-duncan-1 About 20 minutes in to the podcast episode, the guest talks about a stock market bubble in Japan's economy within the past few decades. And he said one thing he saw was company stock prices were trading at 100 times their P/E ratio. P/E is price to earnings ratio. So what this means is that people paid a high price for a share of stock compared to the company's actual earnings. So this tells me earnings are what can tell the value of a company. At least that's one indicator of the value of a company. In conclusion, a company's earnings, of "price to earnings" fame, can be used to judge the value of a company. † For silver-gram valuation see: https://w̶i̶e̶l̶d̶s̶i̶l̶v̶e̶r̶.̶c̶o̶m̶/2021/blog/2021-01-25-0000-morgan-silver-gram-value-calculation.html This blog post first published at https://w̶i̶e̶l̶d̶s̶i̶l̶v̶e̶r̶.̶c̶o̶m̶/2021/blog/ Copyright © w̶i̶e̶l̶d̶s̶i̶l̶v̶e̶r̶.̶c̶o̶m̶ and individual authors (unless otherwise noted) w̶i̶e̶l̶d̶s̶i̶l̶v̶e̶r̶.̶c̶o̶m̶ statement - I blog about products for which I own company shares.