fatvegan

I'm enjoying finance, because I'm learning about a whole lot of stuff that I've never understood. But even so, a lot of it is really lame. We learnt about share price valuations yesterday. The way you work out how much a share should be worth is by putting into Excel how much all the future earnings of the company are going to be, and then pulling out of your arse how much you think the company should return in profits (like 5% a year or 15% if you feel like it). Then you divide something by something else and what you get a that is the "value" of the share. Pretty damn lame.