Is it Overvalued or Undervalued?
Valuation looks at Key Ratios and Projected Price to evaluate the stock’s current value.
Key Ratios like both trailing and forward PE along with PEG (Price/Earnings/Growth) are weighed.
The Price compared to Book (flow of business), Cash Flow, and Sales are also very important factors to provide a well-rounded synopsis of the valuation modeling of the stock.
