RE: How's the buyback going?9 Mar 2025 14:03
Sc
''Market Cap in some cases can be deemed to be a measure of a company's worth, a more accurate method is to use book - to - market ratio to find a company's true value by comparing a company's book value with its market value.''
There is no 'more accurate method' or 'true vale' - each individual investor will decide the worth for them.
The market cap is the valuation that the market is placing on the equity, which changes daily. This valuation is determined by what investors are prepared to pay to get a slice of the business . Their decision will be based on what they see as important metrics to measure the valuation at any given time against are, whether that be TNAV, P/E ratio, book value, dividend yield, shareholder total returns, current and forecast profitability, plus current and possible future economic events, etc. It is up to the individual investor as to which metrics to use as a basis for investing at any given pricing level.