OTCPK:GBGPF - Post by User
Post by
MartialArtson Jan 20, 2018 11:25am
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Post# 27400636
Comparing ACB at $13.48 with CMED at $1.88
Comparing ACB at $13.48 with CMED at $1.88
One of the very, very common problems novices have is evaluating and comparing share prices. Talk to anyone new to investing or trading and everyone has the same issue. It's part of the "maturing" process on the markets. Once you can evaluate a company on market cap and enterprise value, you can shed off the "newbie" moniker.
In order to compare two companies on equal footing, you need to compare them with the same number of issued shares. That seems to be the best way to do it.
So Aurora has a market cap of $6.10B with 452.73M shares issued so the share price is $6100M/452.7 = $13.48 per share.
Now to compare Cannimed share price to Aurora, we really need to use the same number of issued shares otherwise we are comparing difference coins (loonies to nickels where CMED is denominated in loonies and ACB is denominated in nickels). Or "apples to oranges".
So taking Cannimed's market cap of $849M with the same ACB share count of 452.73M, we get
$849M/452.73m shares= $1.88 per share comparing apples to apples. Or total market cap denominated in nickels.
Hope that makes sense. If you have any questions please send me a message if you are scare to be riduculed. Everyone has been a newbie at some point in their lives. Nobody is born with this knowledge.