Price is what you pay and value is what you get. Finding a well-run profitable business with good long-term prospect is not enough. You need to know how much you should be paying for it so you can be certain to make a profit from investing in the stock.
Shrew investors often make money on their investments at the point of buying and not at the point of selling. When you buy a stock at a good price with a reasonable margin of safety you know, with some certainty, that you will make a profit from that investment.
There are many methods to value a stock but each method is either based on asset or income. Ultimately based on the company’s current performance or expected future performance.
Ultra successful long-term investor like Warren Buffett views stock as a business and values stock like a business owner.
You can use the available suite of valuation tools to appraise stock like a business owner with an intention to hold it for a number of years.
"You just have to be opportunistic, and try to figure out what creates value.. where the bottom is, what creates incremental value, and in what combinations."
Dividend income investing tool
Financial report sentiment analysis tool
Business news gathering tool
Quick and easy to use stock screening tool
Price gainers and losers
Tracking insiders buying and selling
Stock total return analysis tool
Company balance sheet analysis tool
Business financial performance analysis tool
Business growth analysis tool
Business financial health analysis tool
Company red flags detection tool
Key financial ratios that every investor should know
Stock relative valuation measures (market-based)
Valuation using the Future Earnings Multiple Method
Valuation using the Return On Equity Method
Valuation using the Capitalization of Income Stream Method
Valuation using the Capitalization of Cash Flow Method
Valuation using the Future Sales Multiple Method
Valuation using the Discounted Cash Flow Method
Valuation using the Ability To Pay Method
Valuation using the Excess Earnings Method
Valuation using Ben Graham Formula
Advanced stock portfolio management tool