What is the right price for a stock? Is it book value, liquidation value or simply its market price at a given moment in time? Would you value a privately-owned company where there is no market value differently than a publicly owned company where there is a market price every day? Is there a difference between "price" and "value". This is a deeper question than you think, so think deep. It will get even deeper in Week Eight if you are really curious.
Simple answer: No such thing
Complicated Answer: No such thing
Not saying that the be a smart ass, but that is a serious answer. There are WAY too many variables between each individual stock AND your investment objectives with that particular stock. Each and every factor will have an effect on the "right price" for YOUR situation and stock.
Depends on the accounting treatment being applied.
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Simple answer: No such thing
Complicated Answer: No such thing
Not saying that the be a smart ass, but that is a serious answer. There are WAY too many variables between each individual stock AND your investment objectives with that particular stock. Each and every factor will have an effect on the "right price" for YOUR situation and stock.
References :
The answer completely depends on the purpose of your valuation. Privately owned companies are as liquid (some say evey more liquid) than public companies if you’re valuing a 100% interest in the company. An owner of 100% of the stock of Private Company ABC can accept a tender offer and the transaction can be consummated far more quickly than a tender offer made for a public company where it’s got to be put to vote to a million shareholders and you have regulatory issues, etc etc.
What’s your standard of value? Fair Market Value? Fair Value? Liquidation Value?
How is the company performing? no profits or cash flow, a liquidation value probably approximates its fair market value. your question is too general/vague to answer correctly. of course price is different than value. for a private company, there is no ‘price’ until value is determined and then a transaction of some sort occurs.
please revise your question and re-ask.
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10+ years in business valuation