How To Value a Stock—Two Basic Approaches
If there is one unsolved problem in the world of investing in equities, it is the issue of ‘valuation’. There are as many valuation tools as there are investors, and some more. No, I am not complaining. The day everyone agrees on one method, the stock markets will come to a grinding halt. Trades will take place only when someone needs money. Everyone knows the right price; so the buyer and the...
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