Valuation of shares assesses a company's stock value based on financial health, profitability, and market trends, aiding informed investment decisions.
Stock valuation is crucial for determining a stock's true value and guiding buy or sell decisions, while preparing investors for market changes.
Share valuation methods include Market, Income, Financial Transactions, DCF, DDM, and EV/EBITDA approaches, each with unique strengths for various scenarios.
Share valuation hinges on factors like company's financials, market trends, earnings, management quality, investor sentiment, and macroeconomic conditions.
Absolute, assessing intrinsic value via fundamentals like DCF, and Relative, comparing market multiples like P/E to peers.
Share valuation is vital to ascertain a stock's intrinsic worth, guiding investors on its market appropriateness, crucial in volatile markets like India's.
Share valuation aids informed investing, identifies profitable opportunities, mitigates risks, supports long-term planning, and enhances portfolio management.