Value Investing CVS to Buy Aetna for $69 Billion in a Deal That May Reshape the Health Industry |
- CVS to Buy Aetna for $69 Billion in a Deal That May Reshape the Health Industry
- Farnam street learning community
- New formula I've found. Please give a comment.
| CVS to Buy Aetna for $69 Billion in a Deal That May Reshape the Health Industry Posted: 04 Dec 2017 02:44 AM PST |
| Farnam street learning community Posted: 03 Dec 2017 07:06 PM PST Can anyone comment on its usefulness/whether it is worth the price? [link] [comments]  |
| New formula I've found. Please give a comment. Posted: 03 Dec 2017 04:51 AM PST Hey everyone, I think I found a new formula that tells me what the price of a stock HAS TO BE when the: earning, equity and dividend stays the same in the future. The formula is as follows: Earnings per share * Equity per share / (earnings per share - dividend) = price. I've based this formula on the PE ratio and another ratio. The other ratio is: (Price - Equity per share) / Dividend. These ratio's should be equal. Price / earning per share = (Price - Equity per share) / Dividend. Using algebra I came up with the first formula. By comparing the calculated price of the first formula with the actual price, you can see if the price is over- or undervalued. When the actual price is bigger than the calculated price, it is overvalued. When the actual price is less than the calculated price, it is undervalued. Whenever you made a conclusion, you can research why it is over- or undervalued. This method is not about calculating the value of the company. But this formula gives me good insight of the opinion of the market. Overvalued: The market thinks that future: earnings, equity or dividend will be lower. Overvalued: The market thinks that future: earnings, equity or dividend will be higher. If you have any questions, please ask me. [link] [comments]  |
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