Is your stock priced right?

In the stock market, identifying a good business is not enough; buying the stock at the right valuations is as much important. Valuing a business means assessing its worth so that you can know if the price you are going to pay for it is reasonable. Smart investors want to buy a business available at less than what it's worth. If you pay too much for the stock, no matter how good the business, it's likely that you will not make meaningful returns or, worse, lose money. How do you assess valuations? While there are some tools available to assess valuations, there is no one definite formula that you can apply to all cases. In fact, valuation criteria may vary from industry to industry. For instance, while it's ok

This article was originally published on August 04, 2020.