I don't post to much but try to read as much as I can.
If its already been asked, please direct me to the thread (had a quick search)
I was just wondering how do you all evaluate a share price/company prior to a purchase? IE - what methods or calculations/ratios do you always or mostly use and why?
Do you find your estimates to be pretty accurate?
What sort of formulas do you use to find out if a company is over or under valued in your mind, and why?
What puzzles me is how you can calculate numbers, get a result but still somehow give a share price estimate.
Obviously things like the PE work on average, ie below 15, above 15.
Very interested in everyone's comments, keen to learn more about evaluating a share price/if a stock is at a discount or premium