Geoff Gannon January 17, 2011

How Much Would You Pay for This Stock? – Blind Stock Valuation #1

In an earlier post, about how to value a business, I said:

Here’s my advice for how to really learn to value a stock. Start with a stock that’s pretty easy to value and completely unknown to you. Don’t look at the stock price! Just try to value the whole company.

Ideally, you should be able to black out the company name, business description, and stock price on a Value Line page and still be able to come up with an approximate appraised value for the business within 10 minutes.

So here’s a blind trial I’ve prepared…

How much would you pay for this stock?

Answer by emailing me your per share appraisal. In other words, tell me how much the stock is worth. I’ll pick the best email answer I get and give the winner a copy of my favorite version of Benjamin Graham’s The Intelligent Investor.

You have until the end of January to send me your email.

Talk to Geoff About Blind Stock Valuation

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