@Cholocar Ill do a quick 2 min post here as to market cap and...

@Cholocar Ill do a quick 2 min post here as to market cap and concepts:

Market cap refers to the size of the overall company.

Market Capitalisation = total shares outstanding x the share price

For NZS that equals 723,160,000 shares x 0.052 = $37,604,320 market cap
At 10c the market cap is = $72,316,000 market cap

You can then do the market cap calc based on any $ of share price out of your curiosity


You then have valuation methods (you really dont need to know this, although this is how a valuation works) such as DCF models (discount cashflow models) , where you project future revenues, discount them back to present value, then get a per share price based on your assumptions. For example, you would put the different contracts in a spreadsheet, forecast potential new contracts etc, then discount it back to present value of what that revenue made then, would be worth today. Although its not only revenue, it uses all financial statements line items and takes into account debt etc but for sake of simplicity. That model then spits out a figure per share, for example "7c" you can see that NZS is undervalued and based on your assumptions/DCF model, it should be bought. Or if it spits out "4c" you can see a share is overvalued (if NZS is currently 5.2c that is) so based on your assumptions its a sell.

That is the game on Wall St that analysts play, researching stocks and performing valuations to see what shares are undervalued - as well as indepth market research, management research etc. Thats called equity research.

I recommend reading:

- Intelligent investor
- Money Master the Game
- One Up on Wall Street

That will present to you the basics of almost everything, as well as a solid as solid mindset for approaching finance. Although for that, Richest man in babylon is probably the best starting book so you understand why youre investing in the first place and how wealth creation works. From those three books above though youll become interested in different topics and delve into them, for example after intelligent investor is Security Analysis, Benjamin Grahams second book.

For context, Benjamin Graham was Warren Buffets professor/teacher. Absolute cult following books. I could not teach the basics in a thread as well as any of these books. Hope that helps.