The Value Composite One (VC1) is a method that investors use to determine a company’s value. The Value Composite score of Capstone Mining Corp. (TSX:CS) is 9. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Capstone Mining Corp. (TSX:CS) is 18.
One way to completely avoid market mistakes is to not invest at all. Of course, that could end up to be the greatest mistake of all….