Stock Valuation
Stock Valuation is the process of determining the intrinsic value of a company's shares. This involves analyzing various factors, including the company's financial performance, market conditions, and future growth potential. Investors use different methods, such as Discounted Cash Flow (DCF) analysis or Price-to-Earnings (P/E) ratios, to estimate a stock's worth.
Accurate stock valuation helps investors make informed decisions about buying, holding, or selling shares. By comparing the estimated value to the current market price, investors can identify whether a stock is undervalued or overvalued, guiding their investment strategies effectively.