Stock Valuation

Stock valuation is the process of determining the worth of a company's shares based on various factors. It considers a company's financial health, growth potential, market conditions, and future earnings. Common methods include comparing price-to-earnings ratios, analyzing cash flow, or assessing assets and liabilities. Essentially, it helps investors decide if a stock is fairly priced, overvalued, or undervalued, guiding their investment decisions. Understanding stock valuation can aid in making informed choices about buying or selling shares in the stock market.