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How Can I Value a Company on My Own?

By Matt Koppenheffer and David Hanson – Feb 13, 2014 at 6:03PM

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Ever wonder how to find the "true" value of a company on your own? Fool financial analysts Matt Koppenheffer and David Hanson offer some insight.

Ever wonder how to find the fair value of a company for yourself, without relying on Wall Street's numbers?

In this video from Thursday's edition of Where the Money Is, Motley Fool financial analysts Matt Koppenheffer and David Hanson take a question from a Fool reader who asks, "I would like to know exactly how to calculate the true value of a stock, both dividend paying and non-dividend paying. What are the necessary formulas/calculations? Would you be able to give me an example? Are there issues that can not be calculated such as management forces?"

The guys discuss why this is such an enormous question to tackle, what the basic theory behind valuing a company is and what the steps involved are, and where investors can go to find tools that will help them along the way.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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