Hi Albert,I use a simple formula to value a company;Revenue for...

Hi Albert,
I use a simple formula to value a company;
Revenue for 2019 x operating margin 25% = nett profit (from historical data)

(nett profit + current assets from balance sheet (yes the $405M etc) - current liabilities from balance sheet) / Number of shares held equated to 39c

The above is likely a fairly crude method for the analysts but I can plug the numbers into a spreadsheet which gives me an indication on wether I would like to invest or not. Many many companies are over valued IMO, I develop an over value number by dividing the current share price by the value I equated ( in this case 39c) giving an over value of 1.58 times (based on the current SP of 61.5c). The above calculations does not take into account dividends and profit forecasts so it is purely historical indicator for me to compare companies.

One could also look at the operating margins as a comparison FMG 60%, BHP 52% & MGX 25%. Over all I think I chose a good buy in comparison to FMG etc as you see they have a healthy balance sheet with low liabilities.