Session 4: Value Investing (Book To Market Ratio, Company Analysis & More!)

Hi All,

This is official now. Capricho Melbourne Central Level 3 as per the suggestion of a free event venue option by one of our members. Please find the program below:

• Any questions on the previous session
• Book Value Per Share vs Market Value Per Share
• Economies and diseconomies of scale
• Data extraction and transformation
• Some reading suggestions

As there will be no whiteboard I will develop some material a head of time to distribute. Looking forward to seeing everyone there.

Session 4: Value Investing (Book To Market Ratio, Company Analysis & More!)

• Market Capitalisation: https://www.investopedia.com/terms/m/marketcapitalization.asp

• Book to Market Ratio (Common Shareholder Equity/Company Market Capitalisation): https://www.investopedia.com/terms/b/booktomarketratio.asp.

• What does Book to Market Ratio tell us: “The book value of a firm is its historical cost or accounting value calculated from the company’s balance sheet. Book value can be calculated by subtracting total liabilities, preferred shares, and intangible assets from the total assets of a company. In effect, the book value represents how much a company would have left in assets if it went out of business today.”

• Tangible vs Intangible Assets: https://www.investopedia.com/ask/answers/012815/what-difference-between-tangible-and-intangible-assets.asp

• Elastic vs Inelastic: [https://www.investopedia.com/terms/e/elasticity.asp#:~:text=Goods%20that%20are%20elastic%20see,e.g.%2C%20gasoline%20or%20food](https://www.investopedia.com/terms/e/elasticity.asp#:~:text=Goods%20that%20are%20elastic%20see,e.g.%2C%20gasoline%20or%20food)).

• Some potentially useful tools to get used to the ASX:

• the ASX website or app. Shows which of the largest companies are having announcements or significant price or trading volume changes.

• another potentially useful tool are websites that allow for downloads of historic pricing data. I believe that yahoo finance provides this.

None of the data below is financial advice nor correct. This is just a theoretical exercise on potential data and sharing of existing information on topics of finance.