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the companies actual value is the current price. If a stock trades at .23 cents that is its actual value. Some use PE ratios which calculates its earnings and how much the stocks are worth compared to its earnings. A stock with a pe ratio of 20 means it trades at 20 times its current earnings or a PE of 5 means it trades at 5 times current earnings. So some say a stock with a PE ratio of 100 is overvalued and a stock with a PE of 2 is undervalued. This isnt true though since there is usually a reason stocks have high or low PE ratios. A stock with a PE of 100 may be that high because they expect 500 percent earnings in the next 2 years and a stock with a PE ratio of 2 may be a company that is loosing profitability or on the verge of bankruptcy. One company may have a PE ratio of it worth being 3x its earnings and drop down to 1x earnings and another company may be 20x current earnings and go up to 70x earnings. That is the problem with some so called value investing. PE ratios are more for big board stocks and most or maybe all pennys I dont see them. It would be hard to put a value on penny stocks because many dont yet have profitability so it is just people speculating which one will one day be a good company or just will rise.
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