"Find Bargain Stock" is an APP easy to those who wish to practice investment theory of
well-known investor Warren Buffett.
A bargain stock is a thing of a stock with a low stock price compared with the value
which the company has.
Indices, such as PER( per-share earning ratio ) and PBR (price book-value ratio), are famous.
However, general indices, such as PER or PBR, are not used in this application.
It is because these indices are simply investigated by Web
and cannot be judged to be bargain stocks only now.
Since this application has focused on a companys intrinsic value,
it is computing two or more value indices from the financial information
which a company publishes.
Moreover, it is asking also about that the computed value is compared with
the present stock price, and there are how much margin of safety.
Furthermore, since this application aims at the ability of anyone to do in easy operation,
an unnecessary function and input eliminated and have left only the required portion.
Next, how to use an application is explained.
1.The input of Basic information
The following three items are inputted as basic information.
The Present stock price and Number of shares outstanding are HP of a securities firm,
and Yahoo! finance etc. into reference.
(1)Company name
(2)Present Stock Price
(3)Number of shares outstanding
2.Input of financial information
The financial information of 1 and the company which came out and inputted is inputted.
Since financial information will be indicated to the settlement-of-accounts report
if it goes to HP of a company, financial information inputs the following item from
this financial information.
(1) Current assets : cash and cash equivalents, notes and accounts receivable, inventories, other current assets
(2) Fixed assets : tangible fixed assets, intangible fixed assets, investments and other assets
(3) Current liabilities : total current liabilities
(4) Fixed liabilities : total fixed liabilities, total other liabilities
The following index is computed based on the inputted information,
and the judgment material of whether to be relatively cheap is offered.
(1) Book-value
(2) Current-asset value
(3) Cash-asset value
(4) Estimated liquidating value
(5) Current ratio
(6) Margin of safety
The book-value is a thing of asset value indicated on balance sheet.
The current-asset value of a stock consists of the current assets alone,
minus all liabilities and claims ahead of the issue.
It excludes not only the intangible assets but the fixed and miscellaneous assets as well.
The cash-asset value of a stock consists of the cash assets alone,
minus all liabilities and claims ahead of the issue.
Cash assets, other than cash itself, are defined as those directly equivalent to and held in place of cash.
The estimated liquidating value of an enterprise we mean the money that the owners could get out of it
if they wanted to give it up.
The current ratio indicates a companys ability to meet short-term debt obligations.
The current ratio measures whether or not a firm has enough resources to pay its
debts over the next 12months.
A margin of safety is a numerical value showing how safe [ from a corporate value and stock price ] a company is.
In this application, a corporate value adopts current-asset value.
Since each value is divided by the number of shares outstanding, it is expressed with this application
per share how much value it is really.
p.s
The brand which is added rarely has a margin of safety.
However, when these attractive brands are able to be looked for, a good thing may break out.