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.

 Valuation of Shares.

Update – 02-12-2010.

More detailed Stock Valuation methods are here.

Revenue Based stock Valuation

Equity based stock valuation

Cash Flow Based Stock Valuation

 

*****With eToro Open Book you can Trade Forex Like a Highly Experienced Trader*****

Filed under: StocksValuation

Like this post? Subscribe to my RSS feed and get loads more!