Something every member of an investment club wants to know is this; What will the price of our stock be in the future?
This article caught my eye because I too have a son who picked GoPro in a virtual portfolio contest. He actually did quite well with it, but has already locked in his gains by getting out of it at a good point.
The article was written by Aswath Damodaran, a professor at the NYU Stern School of Business who is quite famous for his work on valuation. It is a very interesting read. He discusses many possible ways to look at determining the future value of GoPro and the factors that might influence its future stock price.
What I really like is his analysis that shows the statistical distribution of possible future prices depending on which of the variables he discusses ends up being most important.
Even if you are not interested in GoPro as an investment, his thought process as he goes through making his valuation estimate is very well described. There is a lot to learn about valuing all stocks from what he discusses.
I thought many of you would find it interesting also.
Laurie Frederiksen Invest with your friends! www.bivio.com