Valuation is the process of estimating what a stock is worth and if it is trading at a discount, fair price, or is very pricey. Common metrics to determine a stock’s value are: price to earnings (P/E) and forward price to earnings, price/earnings to growth (PEG), price to sales (P/S), price to book (P/B), and price to cash per share (P/C).

<< Back to Glossary Index