: It helps investors decide when to buy, sell, or hold shares based on objective data rather than market sentiment.
: Accurate valuation ensures investors do not overpay, which can protect against significant losses if the market price eventually corrects to meet intrinsic value. stock valuation
Stock valuation is the analytical process of determining the of a company's shares. By comparing this "true" value to the current market price, investors can identify whether a stock is undervalued (a potential bargain) or overvalued (potentially overpriced). Why Stock Valuation Matters : It helps investors decide when to buy,