Undervalued stocks are expected to go higher; overvalued stocks are expected to go lower , so these models analyze many variables attempting to get that prediction right. However, the data point that all the models have in common is a stock’s price-to-earnings ratio.
Is it better to buy undervalued or overvalued stocks?
Undervalued stocks are expected to go higher; overvalued stocks are expected to go lower , so these models analyze many variables attempting to get that prediction right. However, the data point that all the models have in common is a stock’s price-to-earnings ratio.