- Estimate the intrinsic value of stocks using various valuation methods such as discounted cash flow (DCF), price-to-earnings (P/E) ratio, and price-to-book (P/B) ratio.
- Compare current market prices to intrinsic value estimates to identify undervalued or overvalued stocks.
Growth Prospects
- Evaluate the growth potential of companies based on factors such as revenue growth rates, earnings growth projections, and market share expansion.
- Consider qualitative factors such as product innovation, market positioning, and management vision.
Dividend Yield
- Assess the dividend-paying capacity of companies and their track record of dividend growth and stability.
- Calculate the dividend yield as a percentage of the stock price to evaluate income potential for investors.
Technical Analysis
- Use technical indicators and chart patterns to identify potential entry and exit points for trades.
- Monitor price trends, volume patterns, and support/resistance levels to gauge market sentiment and momentum.