Stock Markets Exposed

What is a value stock and how do you screen for them?

I mean one you would think about investing in.............

Public Comments

1. you can get daily stock prices updated on most home pages.
2. A value stock is a stock that is cheap relative to its Sales, Earnings, Cash Flow or Dividends. Some investors also compute a theoretical share price - called intrinsic value - that takes into account future Cash Flows (you need to estimate future Growth, which is very difficult). If the stock trade well below its intrinsic value, it is considered a value stock. To screen for value stocks, - the 1st approach (screening for stocks cheap relative to Sales, Earnings, Cash Flow, Dividends) is simpler since estimating future growth is risky. - you need to ensure there is a good chance that the market will discover the stock's value and push its price up. A strategy is to buy value stocks that are currently beating the market (high relative strength).