Reported content: Post in thread 'Stock trading'

[saurabh.s]

Post in thread 'Stock trading' by sarthakjindal has been reported by saurabh.s. Reason given:

Ai generated content

Content being reported:

How do we know about undervalue or overvalue stock?

1. Check the P/E Ratio
   • What to do: Look up the P/E ratio of the stock.
   • How: Search for the stock on financial websites like Moneycontrol, NSE India, or Yahoo Finance.
   • Rule of Thumb: Compare it with the average P/E ratio of the industry. If the stock's P/E is significantly lower than the industry average, it might be undervalued. If it's much higher, it might be overvalued.
2. Look at the P/B Ratio
   • What to do: Find the P/B ratio of the stock.
   • How: Again, check financial websites for this information.
   • Rule of Thumb: A P/B ratio below 1 could suggest the stock is undervalued, while a ratio above 3 could indicate overvaluation. Compare it with industry norms for better context.
3. Review the Dividend Yield
   • What to do: Check the dividend yield.
   • How: Available on financial news websites.
   • Rule of Thumb: A high dividend yield might indicate the stock is undervalued, but ensure the company’s dividends

 

[Bharatiya Nagrik]

@nikhilchauhan @ShavirB
Please look at the reporting functionality. It should only go to moderators and admins for review. It should not get posted like a discussion.