12-05-2013, 04:13 AM
I think evaluation of stocks basically means identifying them on the basis of undervalued/overvalued stocks. I personally feel this that this is quite a necessary step to do before investing. Undervalued stocks are identified on the basis of various factors such as Price-Earnings Ratio(P/E), earnings yield, revenue growth, net profit margin earned by company, Debt to Equity Ratio for stock, etc. In fact I Google in past about stock pricing and found below article quite useful. Hope this will be exactly what we are looking.
http://www.valuespreadsheet.com/value-in...mple-steps
http://www.valuespreadsheet.com/value-in...mple-steps