accounting

Thanks for your reply. I got some idea about the past and future profit/loss.But I want to know more about the past and the present valuation method.So I will know that I am buying at bargin price and safety of margin.If it's possible pls provide me with equation or a wesite that I can dig in for information.Thaks

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WayneMulligan answered a question in Accounting.
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WayneMulligan answered one year ago …

Well the present valuation is based on both past and future returns, sorry for not making that clearer. There are several equations you can use that are a little too complex to describe right here. What I'd do if I were you is pick up a book by Joel Greenblatt titled, "The Little Book That Beats the Market" and visit his site: www.magicformulainvestin.com. It will give you a great overview of how asset valuation works and how to incorporate margin of safety into your approach to the markets. Let everybody here know how the book worked out for you - I personally loved it!

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