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How to perform qualitative research to evaluate a stock

How to perform qualitative research to evaluate a stock

Sunday, December 18, 2016

Expert: Barry Norman
  • Forex
  • Stocks
  • CFD
  • Indices
  • Technical Analysis
  • Beginners
The value of a stock is determined by market activity. When making a trading, the investor should compare a stock’s actual price to its fair value. There are a variety of valuation processes in this class we will look at the 6 primary indicators to determine the proper value of a stock. These include earnings per share, price to earnings, growth ratio, book value, dividend payout ratio and dividend yield. These indicators are known as EPS, P/E, PEG, P/B and DPR and are the most crucial tools in evaluating a stock’s price movement and value.

Quantitative research begins with financial information that companies are required to file. There are endless metrics and ratios investors can use to assess a company’s general financial health and calculate the intrinsic value of its stock. But in all things, context is key.

In this class, we will take a look at how to apply these indicators and ratios to pick undervalued and overvalued shares. These indicators will also help you find long term investments to build your portfolio.
Picking stocks is much like evaluating any business or company you might consider buying. After all, when you buy a stock, you’re essentially purchasing a stake in a business.

Warren Buffett famously said: “Buy into a company because you want to own it, not because you want the stock to go up.” That’s because when you buy stocks, you purchase a personal stake in a business.

Barry Norman
The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.
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