> Stock Investing Enterprise Value - what range would tell me a company is under or over valued?

Stock Investing Enterprise Value - what range would tell me a company is under or over valued?

Posted at: 2014-12-05 
Use overbought/oversold overlays and/or indicators, like Stochastics, RSI, Bollinger Bands. There's usually a fluctuating pattern of overbought & oversold. You can even do this with the entire market indices like S&P, DJIA, etc. The examples you gave, I think, are maybe a little too detailed for what you really want to accomplish which is buying low against the historical swing "behavior" of the stock and the timing of the market in general. Charting the overlays &/or indicators I've described will great you much greater confidence when to buy low, assuming that it's a target for acquisition. Our approaches may be somewhat different. Yours uses a FUNDAMENTAL analysis (numbers) and actually I've never heard of those specific ratios (which may not mean much), and mine are TECHNICALS (charting, patterns). I hope with a little more research, that you make the right buying and later selling choice. Cool thing about my method is that you can use them for overbought too at the high end (the hook"--use numbers like 80/20 (sometimes "-80/-20" which are the hook points that let you jump in on the *way* up or down *without* the risk of the extremes (100/0), so you know when to sell it. This is just one of many, many examples of what's called "swing trading". They should call it "surfing" cuz you can ride the same stock up and down all day, all week, all month, all year depending on your time frame and how much time you want to invest each day stalking your stocks. But if you're interested in what I'm talking about, grab some books/online articles on Swing Trading. It's a LOT less risky since you're buying at lows generally and selling at the tops usually. Thanks for the opportunity!

Compare to other companies in the industry.

As an example

Canexus Corporation (CXUSF) has the following Value listed on Yahoo - I understand that it is an acquisition value for mergers. I have been told it is a good way to get an Idea of whether the company is under valued or over valued, I just don't really understand how to interpret the results - thanks for your time :)

Enterprise Value/Revenue (ttm)3: 2.41

Enterprise Value/EBITDA (ttm)6: 13.69