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Hoots : What do you think the fair price of this stock is based on these summarized financial statements? I have been trying to make a valuation by reading the financial statements, but I believe I am just guessing. I have an idea, - freshhoot.com

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What do you think the fair price of this stock is based on these summarized financial statements?
I have been trying to make a valuation by reading the financial statements, but I believe I am just guessing. I have an idea, but I do not understand completely. Can I get a valuation and a short explanation as to how the valuation is came up with? The reference i'm trying to understand is:

Annual:

Quarterly:


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With only a single financial statement showing two periods, fundamental analysis is difficult. You are going to have to make a LOT of assumptions to determine a fair price. Is the cash flow in the period normal or abnormal? Will the growth in cash flow in that period be sustainable? What factors might hinder future growth? Are there a lot of non-cash activities that would help or hurt the company in the long run?

Another method is by comparing multiples. Look at ratios such as price/earnings (P/E), price/sales, and price/book to see if the stock appears to be "undervalued" relative to other companies in the same market. You still need to be cautious, though, since the denominator in these ratios could be unsustainable (earnings or sales could be inflated due to uncommon activity) or there are other factors not accounted for in these ratios to justify the high or low price.

I believe I am just guessing

You are - but so is everyone else. Bottom line - with only that much information, your guess is as good as anyone else's


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Stocks are worth nothing, zero, until someone places a Bid.

(Things like "analysis documents" from brokerages and "spreadsheets" from corporations, are: advertising. They are marketing materials.)

The stock is worth zero because it has no bids.


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