We know that a stock or share represents partial ownership of a company, with the stock market providing a regulated environment in which shareholders can sell their portion of the company to a willing buyer. But how do fund managers calculate the value of shares so they know they’re getting a generous, or at least fair price?
While there’s no simple answer, there are various ways to help determine a company’s fair value. In this investment article, Omnis investments explore why we bother investing, how we might try and calculate the fair value of shares and why it’s important to be aware of behavioural bias when you’re investing in equities.
This article (click on image below) is part of The Openwork Partnership’s in-depth series.