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Originally Posted by xoxoxoBruce
I remember reading in Barrons, a long time ago, there is(or was) an accepted formula for determining the stocks value.
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Those principles are as valid today as they were then. The economics of what a company is worth are as fundamental as geometry. The old equations allow one to "plug in" things like asset value and growth potential but before the computer revolution, those two variables could usually be quantified with reasonable precision. Today, however, the variability in how those two things are measured is exponentially greater.
We can both look at all the assets on General Motors balance sheet and decide what we think they are worth and our answers would probably be pretty close. Try it with Google's assets and the answers would probably be very different as will our answers on the future revenue Google can squeeze out of those assets.