Question

A presentation about Stock Valuation , how is it valued, What are parameters covered and how stock valuation changes with change in economy?

Answer 1

Stock valuation is a process of valuation of the stock according to which investment is done into the stock. It is done in order to find out whether, stock is within the investable range or not and there is a difference between the price and value of the stock.

It can be valued using various methods like discounted cash flow method or intrinsic value method along with price to earnings and other methods which are based on different other parameters which will give a better idea about whether to invest in stock or not.

There are changes in the macro and micro factors related to operations of a company and due to which the growth rate of a company keeps on fluctuating and profitability of the company also keeps on fluctuating, then the valuation of the stock also had to be the adjusted according to the changes in macro as well as micro environment to make the valuation look irelevant.