QUESTION OF THE WEEK: FINDING EQUITY/BVPS ON INVESTOOLS
Phil Town Today's Question of the Week comes from Omero in San Antonio, TX. It's an Investor Toolbox (Investools) question:
Q: Great book! I am currently using the Investor toolbox website and I can find all big five easily except for equity (BVPS) growth rates. I understand how to caluclate BVPS growth rates but I want to make sure I'm pulling the right data from the balance sheet. One the balance sheet, there are 3 totals at the bottom. the first is TOTAL LIABILITIES, the second is TOTAL EQUITY, and the third is TOTAL LIABILITIES & SHARE HOLDER'S EQUITY. The third total simply adds the first two. Which total should I use?
A: Use the Total Equity line to do the calculation. And then use the Rule of 72.
About Phil Town
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces.
He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil's goal is to help you learn how to invest and achieve financial independence.
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