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Max M
Lv 7
Max M asked in Business & FinanceInvesting · 1 decade ago

How do I determine the right price for a stock?

5 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    by studying technical analysis and analyzing the stock with all information you can get. All my shorterm indicators say that the market is over priced. Longterm indicators say that they are fine and under priced. Fundamentals say the market is worth nothing as this entire system is only a PONZI scheme

    Peace

  • Anonymous
    1 decade ago

    The actual value of a stock is the present value of the future income. Most students have a little difficulty with the concept. Just stick to it. Never trust an analyst to do it for you. They let anybody be an analyst now.

    A lot of people just try to use a rule of thumb like not more than 10 times earnings. You miss all of the best stocks that way, but it is better than insane things like book value.

  • 1 decade ago

    The market price should not be more than the twice of the book value of the share.

  • krk
    Lv 7
    1 decade ago

    Twice the average p/e ratio for the last 5 years.

  • ahmann
    Lv 4
    5 years ago

    it somewhat is referred to as grant and demand. If there are too many shoppers, they bid up the fee. If there are too many sellers, they might desire to diminish their costs to discover a customer. interior the inventory marketplace there are maximum of shoppers and sellers at any given 2nd that costs exchange continuously. In different words, if the fee is going up purely slightly, human beings word and start up advertising. If it is going down, shoppers start up appearing.

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