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Fair Market Value of a Stock

Photo by Roberto Contreras on Unsplash So we did a lot of math last time to determine the Tangible Book Value of a stock, determining if it was worth the purchase from a tangible asset perspective. For our example company, Nestlé, this purchase was not a great buy from the TBV perspective. As I said though, this doesn't necessarily mean it isn't a buy. After all, we did note in the supermarket a very large stock of their Lean Cuisine frozen meal line. Today, we calculate the fair market value, or FMV, of Nestlé. What is Fair Market Value (FMV)? Clinically, we could look at Investopedia and see that Fair Market Value is defined as, "the price that an asset would sell for on the open market," however, I think that is too cut and dry. We need to better understand what that means. This means, if the profits to earnings remain ...
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About Me


 Mat Sturdevant

My Personal Background

As a native of Central New York, I've been in South Carolina for the last 15 years. Currently living in Columbia, South Carolina with my wife and daughter. My normal day job is as an application development manager at BlueCross BlueShield of South Carolina. I am very fortunate to have a great team which consistently develops knock-out applications for our customers. 

My Educational Background

I have an Associates of Science in Multimedia Design from Rasmussen College and a Bachelors of Science in Information Systems from Strayer University. 

No finance in your background!? Why do I listen to you?

Most likely, you read what I say because I am just like you. I have to learn the hard way. Reading financial reports is a pain for me as well. When I read financial advice from experts, it is a stretch for me to apply it to my simple portfolio.

What is my goal?

I want to share my mistakes and my methods for investing. I want you to see how I work through what to purchase and how much of it I buy when I start. These are the principles I hold dear. I want to make sure that investing isn't a gatekeeping practice and any little guy out there can practice intelligent investing. Too often, the process of picking stocks and learning when to sell or when to buy more can be confusing and I aim to make that more simple for you. Hopefully, somewhere in this blog, I am able to do that.

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Fair Market Value of a Stock

Photo by Roberto Contreras on Unsplash So we did a lot of math last time to determine the Tangible Book Value of a stock, determining if it was worth the purchase from a tangible asset perspective. For our example company, Nestlé, this purchase was not a great buy from the TBV perspective. As I said though, this doesn't necessarily mean it isn't a buy. After all, we did note in the supermarket a very large stock of their Lean Cuisine frozen meal line. Today, we calculate the fair market value, or FMV, of Nestlé. What is Fair Market Value (FMV)? Clinically, we could look at Investopedia and see that Fair Market Value is defined as, "the price that an asset would sell for on the open market," however, I think that is too cut and dry. We need to better understand what that means. This means, if the profits to earnings remain ...
Post a Comment
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