04-28-2015, 01:36 PM
(04-28-2015, 01:00 PM)stewardinlife Wrote: I am still trying to learn, but if you could explain how to evaluate if a stock currently is overvalued or fair/undervalued (for purchase decision).
Thanks again.
Paul
That is a much longer topic than what I have time to completely respond to right now. I use FAST Graphs as my primary valuation tool. If you are serious about putting $1000 a month into investments and plan on making regular purchases, the $10 a month for a subscription would be money well spent in my opinion.
In a nutshell, I generally look at PE and dividend yield in historical terms for a company and compare them with expected growth rates. Try to buy when it is trading at or below historical valuations and at or above historical dividend yields and generally you will do well over the long run.