What are valuation metrics like P E or PEG
Understand how valuation metrics help you see if a stock is cheap or expensive based on profit and growth.
Valuation metrics help you understand if a company is cheap or expensive.
• P E compares the stock price with the company's profit.
• PEG compares the P E with company growth.
• Book value shows what the company is worth if you add all assets and remove all debts.
In simple words
Valuation helps you avoid overpaying for a stock.