The Real Price of a Stock
I read some Graham, Fisher, Buffett and Lynch last night and found something that was pretty interesting.
I believe it was Lynch who alluded to this method of determining the real price of a stock.
If you take the stock price and add the debt per share then subtract the cash per share, you'll come up with a much more accurate share price. From this, you can then determine the new Price/Book and Price/Earnings. Using this method has turned up some pretty interesting things for me. Has anyone else tried this?