How to find undervalued stocks
I am going to tell you a trick to invest in stock . marketplace , earnings , book value these are really very important terms to be noted . If the typical P/E ratio in a sector is 20 and you find a stock trading at 10, you need to investigate a company with a 4% divedent in a sector yields 2% you either have a company that’s about to go over a financial cliff, or one that’s a legitimate undervaluation. The higher divident yield is either resluted in the financial problem or it’s a case of the stock that’s paying an above average rate, simply because it’s currently out of favor.