Company valuation is not a simple concept to understand, but it is a crucial consideration when it comes to both picking stock and timing your investment.
This three step guide will help you calculate company valuation and understand what the numbers mean.
WM Morrison (MRW) and Auto Trader (AUTO) are two companies listed on the FTSE 100 index of the London Stock Market. Both are consumer facing companies servicing predominantly British customers. In this guide we will be using these two companies to paint a picture of company valuation.