AI Hub 15 October 2024 How Can You Determine If a Stock Is Undervalued or Overvalued? Valuation is a cornerstone in the world of investing. Without understanding the true value of a stock, investors are essentially navigating the financial markets without a compass. Stock valuation not only helps identify potentially profitable investments but also guards against overpaying for a stock that appears promising. Through this article, we aim to shed light on the importance of stock valuation, the methods used to determine it, and how investors can leverage this knowledge to make informed decisions. Whether you're a seasoned investor or new to the world of trading, this guide will serve as a valuable resource. Let's dive in. Introduction 1. Importance of Valuation Valuation plays a pivotal role in the investment process. By understanding a stock's value, investors can make better decisions regarding buying, holding, or selling...