Valuation of Shares.
Before you buy shares it is very important to do some mathematics.
1. Look for shares with high EPS (Earning Per Share )
2. Cheap or expensive? – you can find out it by calculating PER (Price Earnings Ratio) cheap stocks are having low PER. But remember High PER shares may have good growth potential.
Update – 02-12-2010.
More detailed Stock Valuation methods are here.
Equity based stock valuation
Cash Flow Based Stock Valuation
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Filed under: Stocks • Valuation
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