How Do I Evaluate Stock Performance?
Stock evaluation is the overall evaluation of stock investment value and investment risk.
Stock evaluation
Right!
- Chinese name
- Stock evaluation
- Foreign name
- stock valuation
- Stock evaluation is the overall evaluation of stock investment value and investment risk.
- The main method of stock evaluation is to calculate its value, then compare it with the market price of the stock, and decide to buy, sell or continue to hold it as it is lower than, higher than or equal to the market price.
- Basic model of stock evaluation:
- Stock evaluation is usually defined as the overall evaluation of stock investment value and investment risk, while stock rating is based on the judgment of stock investment value and investment risk to give its investment level. Considering that both the stock investment value and investment risk are evaluated or rated, in fact the two are consistent in terms of their content and methods. However, from the perspective of the results, the former does not have a certain strict form, and the latter has a certain strict form. The result is a certain investment grade. For example, Merrill Lynch simply divided the stock into "buy, neutral and sell", and Morgan Stanley divided the stock into "overweight, neutral and underweight." Therefore, we can think that the former emphasizes a process and content, while the latter emphasizes a result and form.
- At present, under the stimulus of pursuing accurate results, the process and method of stock evaluation are becoming more and more complicated, while the performance of stock rating results is becoming simpler. Especially after the dot-com bubble burst, the accusations of many investors forced some famous foreign securities consulting agencies to tend to give investors the simplest rating results.
- If we focus on the investment value of stocks, then we can call stock evaluations (or stock ratings) as stock value evaluations (or value ratings). Of course, if it is limited to the company's financial analysis, it can be called financial evaluation (or financial rating). For stock investment risk, it should usually be divided into market risk and financial risk (or systemic risk and non-systematic risk). Market risk refers to the risk brought by the stock price along with market fluctuations, and financial risk refers to the risk brought about by the company's operating problems as reflected in the company's financial situation. In general, most evaluators (or raters) often give a comprehensive evaluation or rating, that is, the evaluation or rating result reflects the integration of the two aspects of stock investment value and investment risk. Happening. [1]