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How to Value a Stock

Use analyst secrets and simple formulas to see if a stock is a "Buy" or "Avoid."

Updated yesterday

1. Predicting Future Share Prices (The Strategy)

  • The Video: An overview of our three primary valuation frameworks.

  • The Goal: Why we never rely on just one number. You'll learn how to "triangulate" a fair price using three different lenses.

  • Bonus: See how to set up your TradingView watchlists to alert you when a stock hits its "Buy Zone."


2. Unveiling Analyst Forecasts: Tapping into the "Smart Money"

  • The Video: How to find Low, High, and Average price targets for free.

  • What you’ll learn: How to determine if the "Pros" are bullish or bearish on a stock and how to interpret the consensus.

  • Mentor Insight: Analysts can be wrong—often. In our Thursday Mentoring Sessions, we show you how to spot "stale" targets that haven't been updated for the latest earnings report.


3. The P/E Formula: The Gold Standard

  • The Video: $\text{Share Price} = \text{EPS} \times \text{PE}$.

  • What you’ll learn: How to use historical Price-to-Earnings data to set a realistic 12-month target.

  • Action Step: Find the average 5-year P/E for your favorite stock using the tutorial steps.


4. The P/S Formula: The Growth Lens

  • The Video: $\text{Share Price} = \text{Revenue Per Share} \times \text{PS}$.

  • What you’ll learn: Why the P/S ratio is often better for fast-growing companies that aren't yet showing high profits.

  • Case Study: Why Alaska Airlines' revenue per share is a critical metric for its valuation "floor."


5. Calculating the "Upside Potential" (The Final Score)

  • The Video: Averaging your estimates and identifying pitfalls.

  • What you’ll learn: How to calculate the percentage difference between the current price and your target.

  • The Warning: Why a "Cheap" stock can sometimes be a "Value Trap."

Mentor Insight: This is the most dangerous part of investing. Calculating the number is easy; having the conviction to buy is hard. Our mentors provide the "Second Pair of Eyes" to verify your math before you click buy.

🚀 Automate Your Valuation with EquityScan

Stop doing the math on the back of a napkin. EquityScan does all of this for you instantly.

  • Automatic Targets: See the P/E and P/S valuations for every stock on the S&P 500.

  • Upside Sorting: Sort the entire market by "Highest Upside Potential" in one click.

  • Institutional Data: Access the same analyst forecasts we use, built directly into your dashboard.

👨‍💼 Move from "Student" to "Professional"

Calculations are just theory until you put money behind them. Our Mentoring Service is designed to take the guesswork out of your valuation:

  • The "Valuation Audit": Not sure about your P/E calculation? Share it in our private group, and our mentors will review it for you.

  • Trade Alerts: We don't just teach the formulas; we send you the results. Get our WhatsApp Alerts showing the exact stocks we've valued as "Undervalued" this week.

  • Confidence under Pressure: When the market gets volatile, we revisit these valuations live on Thursdays to remind you why we own what we own.

Invest with confidence

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