Price..???

#1
Hello Experts
I know its a stupid question...
Can someone pls tell me how to identify a stock ideal purchase price using it's fundamental data, how it much actually worth

vinu
 
#2
Using fundamentals you can arrive at the MRP of a stock. Keeping in mind factors like TTM EPS, future expected EPS growth rate,inflation,expected returns. Arrive at the worth of a stock.The price you think the stock is actually worth if it had a sticker price. Once this price is decided you buy it at a discount to this price and sell it when the sticker price is achieved. There are many ways of arriving at this sticker price. Damodaran books on valuation teach this kind of investing. DCF method P/E method. Reading up on these topics will help you a lot.