Common and preferred shares offer investors different income and rights.

Common shares allow the right to vote at meetings, and their investors seek growth and capital appreciation in the long term.

Preferred shares prioritize dividends and can be classified as “hybrid” investments between stocks and fixed-income securities.

The valuations of these investments consider their characteristics and market conditions.

Common shares are usually evaluated by DCF – Discounted Cash Flow, considering geopolitical events, strategic planning, potential growth, market demand, earnings, possible dividends, risks and discount rate in a period desired by investors (business valuation).

The present value of these projections represents the current value of the stock.

Preferred shares are usually evaluated by the expected cash flow (dividends) discounted by the rate that considers the risks in the estimated period for return.

Throughout the investment period, market conditions and risks change and affect the values initially calculated, generating fluctuations and opportunities for goodwill or discount.

Mynarski evaluates stocks for safe investments.

Mynarski, valuing shares !