I'm new to investing, and would like to know what math needs to be done tp determine whether a company is undervalued, or overvalued. Any help would be greatly appreciated. Thanks!
It if has reached zero and they have more cash and assets than debt.
Ok, now for the other real answer. Trying to analyzing an undervalued company right now is very difficult. You would be looking at "fundamental analysis" which right now is pretty much out the window, just like it was on the way up during the.com boom, it is out the window on the down side too.
Technical analysis is more useful in this market right now.
Fundamental analysis
http://en.wikipedia.org/wiki/Fundamental_analysis
Tools of Fundamental Analysis
http://stocks.about.com/od/evaluatingstocks/a/Fundanatools1.htm
Technical analysis
http://en.wikipedia.org/wiki/Technical_analysis
http://www.investopedia.com/university/technical/
http://stocks.about.com/od/glossary/g/glossarytechana.htm