I am still playing the tutorials, but I have hundreds of hours played in Capitalism II, and even there I had the same problem: my shares prices are always extremely low when compared to my AI competitors.
Last night I was playing the last tutorial, continued playing even after I completed the goals, and even though I had a good share of a few markets (Oil>Plastic>drugs, furniture and jewelry) and even dominance, and I was making quite a lot of money, my shares were about $220 while my AI opponents have shares worth thousands.
I can't understand how that happens to me every singe game!
Can you please, really kind soul, tell me what I am doing wrong, or not doing, to get my shares to stall at such miserable prices?
My Shares have the most appalling low price
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Stylesjl
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Re: My Shares have the most appalling low price
Share prices are proportional to the total market capitalisation divided by the number of shares. It is possible that the AIs start off with fewer shares and hence the price per share might be higher.
You should check the overall market capitalisation - this is what really tells you how valuable your corporation is.
You should check the overall market capitalisation - this is what really tells you how valuable your corporation is.
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CMcF
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Re: My Shares have the most appalling low price
The best approach is to never rely heavily on debt—regardless of how high the potential return might be. You’ll never truly "win," but you might just survive. Currently, I run the smallest company, yet it boasts the highest share price.
CMcF Invest – Stock Market Performance in Detail – Mineral 1994 – 100% Equity-Financed
Save: Nov 1, 1994 | 50 competitors | Starting capital: Low ($20M, identical for all 51)
SHARE PRICE
IPO Jan 1990: $20.00 (par value)
Jan 1994: $66.07 Rank 1/51 | +230.35% over 4 years | CAGR ~34.8%
Nov 1994: $69.02 Rank 1/51 | +4.46% over 10 months | +245.1% since IPO
36-Month Low/High: $52 -> $69 (based on charts for GPS/car radios/sunglasses)
Volatility: Low – showing steady growth, driven by a debt-free balance sheet and a "land bank" (asset reserves)
MARKET CAPITALIZATION
Jan 1994: $220.25M Rank 9/51 (among 53 total; 2 are private: Chicco/Unilever)
Nov 1994: $230M Rank 9/51 | +$9.75M out of $10M
Valuation: $230M / $112.5M equity = P/B 2.04
$230M / $17.6M profit = P/E 13.06 = undervalued
Comparison (Top 5):
1 Chevron $308M P/E ~12.3 Profit ~$25M
2 Saudi Aramco $297M P/E ~13.5 Profit ~$22M
3 Auchan $270M P/E ~15.0 Profit ~$18M
4 Ikea $264M P/E ~22.0 Profit ~$12M
9 CMcF Invest $230M P/E 13.06 Profit $17.6M (Rank 4) = more efficient than Ikea/Costco/IBM
KEY FINANCIAL METRICS
P/E 13.06: Below market average (Top 10 average ~15) = inexpensive
P/B 2.04: 2x book value, accounting for $22.59M in hidden reserves (land) not reflected on the balance sheet
P/S (Price-to-Sales): $230M / $51.2M revenue = 4.49
Equity: $112.5M | Net Worth (Jan) $95.7M | Cash $30.6M after $40M debt repayment
Interest savings: $40M * 5% = $2M/year = +11.3% profit = +$0.60 per share/year
Dividend: $0 – all earnings reinvested (land + stores)
Free float: 100% – no anchor shareholders identified
RANKING PROGRESSION
1990: Rank 26/51 by market cap (all valued at $20M)
1992: Rank 15/51, driven by a land bank of 8 prime-location parcels (Traffic 151)
Purchased for $1.769M -> Now worth $4.593M = +159.68% | Unrealized gain: $22.59M
1993: Rank 11/51, driven by Store 001 (26.38% margin, excluding advertising/R&D)
1994: Rank 9/51 | Stock has held the #1 position consistently since 1992
WHY IS IT THE #1 STOCK, YET ONLY RANKED 9TH BY MARKET CAP? 82% of assets are tied up in land ($67.8M in land + raw materials / $95.7M net worth).
The stock market only values corporate assets ($13.2M) + inventory ($860k) + profit; it ignores hidden reserves of $22.59M.
Adjusted: Equity ($112.5M) + hidden reserves ($22.59M) = $135.09M. Applying a P/B ratio of 2.04 results in a fair market cap of $275.5M (ranking 3rd).
FORECAST WITH "TWIN" (ZWILLING)
4 "Twin" plots, 24 points of sale, plus 4 vacant plots and $18.3M in cash.
Expected: Revenue growth from $51.2M to $95–100M; profit growth from $17.6M to $30–32M.
Market cap projected to rise from $230M to $320–350M—placing it 3rd, ahead of IKEA, Costco, and IBM.
Share price projected to rise from $69 to $95–105 (assuming a constant P/E ratio of 13).
STOCK MARKET CONCLUSION
Success driven by: land bank, zero debt, and a 26% margin—achieved without spending on advertising or R&D.
Ranked 1st in share price performance since 1992; undervalued with a P/E of 13 and a P/B of 2.04 (due to hidden reserves).
31 out of 52 investment strategies (KIs) show losses of up to 287%—you rank 4th in terms of profit.
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CMcF Invest – Stock Market Performance in Detail – Mineral 1994 – 100% Equity-Financed
Save: Nov 1, 1994 | 50 competitors | Starting capital: Low ($20M, identical for all 51)
SHARE PRICE
IPO Jan 1990: $20.00 (par value)
Jan 1994: $66.07 Rank 1/51 | +230.35% over 4 years | CAGR ~34.8%
Nov 1994: $69.02 Rank 1/51 | +4.46% over 10 months | +245.1% since IPO
36-Month Low/High: $52 -> $69 (based on charts for GPS/car radios/sunglasses)
Volatility: Low – showing steady growth, driven by a debt-free balance sheet and a "land bank" (asset reserves)
MARKET CAPITALIZATION
Jan 1994: $220.25M Rank 9/51 (among 53 total; 2 are private: Chicco/Unilever)
Nov 1994: $230M Rank 9/51 | +$9.75M out of $10M
Valuation: $230M / $112.5M equity = P/B 2.04
$230M / $17.6M profit = P/E 13.06 = undervalued
Comparison (Top 5):
1 Chevron $308M P/E ~12.3 Profit ~$25M
2 Saudi Aramco $297M P/E ~13.5 Profit ~$22M
3 Auchan $270M P/E ~15.0 Profit ~$18M
4 Ikea $264M P/E ~22.0 Profit ~$12M
9 CMcF Invest $230M P/E 13.06 Profit $17.6M (Rank 4) = more efficient than Ikea/Costco/IBM
KEY FINANCIAL METRICS
P/E 13.06: Below market average (Top 10 average ~15) = inexpensive
P/B 2.04: 2x book value, accounting for $22.59M in hidden reserves (land) not reflected on the balance sheet
P/S (Price-to-Sales): $230M / $51.2M revenue = 4.49
Equity: $112.5M | Net Worth (Jan) $95.7M | Cash $30.6M after $40M debt repayment
Interest savings: $40M * 5% = $2M/year = +11.3% profit = +$0.60 per share/year
Dividend: $0 – all earnings reinvested (land + stores)
Free float: 100% – no anchor shareholders identified
RANKING PROGRESSION
1990: Rank 26/51 by market cap (all valued at $20M)
1992: Rank 15/51, driven by a land bank of 8 prime-location parcels (Traffic 151)
Purchased for $1.769M -> Now worth $4.593M = +159.68% | Unrealized gain: $22.59M
1993: Rank 11/51, driven by Store 001 (26.38% margin, excluding advertising/R&D)
1994: Rank 9/51 | Stock has held the #1 position consistently since 1992
WHY IS IT THE #1 STOCK, YET ONLY RANKED 9TH BY MARKET CAP? 82% of assets are tied up in land ($67.8M in land + raw materials / $95.7M net worth).
The stock market only values corporate assets ($13.2M) + inventory ($860k) + profit; it ignores hidden reserves of $22.59M.
Adjusted: Equity ($112.5M) + hidden reserves ($22.59M) = $135.09M. Applying a P/B ratio of 2.04 results in a fair market cap of $275.5M (ranking 3rd).
FORECAST WITH "TWIN" (ZWILLING)
4 "Twin" plots, 24 points of sale, plus 4 vacant plots and $18.3M in cash.
Expected: Revenue growth from $51.2M to $95–100M; profit growth from $17.6M to $30–32M.
Market cap projected to rise from $230M to $320–350M—placing it 3rd, ahead of IKEA, Costco, and IBM.
Share price projected to rise from $69 to $95–105 (assuming a constant P/E ratio of 13).
STOCK MARKET CONCLUSION
Success driven by: land bank, zero debt, and a 26% margin—achieved without spending on advertising or R&D.
Ranked 1st in share price performance since 1992; undervalued with a P/E of 13 and a P/B of 2.04 (due to hidden reserves).
31 out of 52 investment strategies (KIs) show losses of up to 287%—you rank 4th in terms of profit.
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