Hello all, I am ready to start buying into the stock market! My brief history of investments include crypto and buying into my own company stock through the ESPP. Both paid off very well but both were very speculative and risky.
To prep myself for investing in the stock market I read the intelligent investor. Benjamin Graham talks about a lot of different metrics such as to identify companies that are undervalued. I know there are caveats to each one but I was curious what others use as their number one metric to first start looking into (not necessarily buying) a companies stock?
P/E? market value vs book value? net income? Worst performance over the past year or so (which would identify the company being potentially undervalued by a illogical market reaction)?
In my opinion it seems like looking at book value vs market value makes the most sense seeing that it is accounting for a companies total assets and companies selling for less than their book value should hypothetically be undervalued. What are the thoughts of more experienced investors?
Submitted March 31, 2018 at 09:31PM by 12manyNs https://ift.tt/2pU8fRV
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