Stock Valuations
- What is the primary goal of stock valuation?
- How does Warren Buffett’s famous quote relate to stock valuation?
- Why can a ‘bargain’ stock be potentially dangerous?
- What are the four methods mentioned to value a stock?
- What is the PEG ratio and how is it calculated?
- What does the PEG ratio indicate about a stock?
- What is the Discounted Cash Flow (DCF) Method?
- Why should an investor consider using the DCF method?
- How can one overcome the limitations of the DCF method?
- What is the Discounted Earnings Approach (DEA) and when is it most useful?
- What are the limitations of the Discounted Earnings Approach?
- What does the term ‘Book Value’ refer to?
- How is the Price-to-Book Ratio calculated and what does it indicate?
- Why might an investor choose to use the Book Value method for valuation?
- Can more than one valuation method be used to determine the value of a stock?
- How is the concept of the time value of money relevant to the Discounted Earnings Approach?
