Are Cheap Stocks Under $1 Truly a Bargain? | Value Investing News

Are Cheap Stocks Under $1 Truly a Bargain?

  • Before we determine whether cheap stocks under $1 are a bargain, we need to first examine the actual value of the company, as the cheap stock price alone does not represent a company’s actual worth.
  • Market Capitalization = Current Market Price (per share) X Total Number of Outstanding Shares
  • Will you pay for something that sells at 45 times its net worth?
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