I am a beginning investor, and I was wondering what formulas or strategies are used when calculating value of stocks, or when a stock is over priced, or just some formulas on how to analyze a company? Of course, using ratios such as the peg are utterly uselss and could be said as being the same as flipping a coin. So to restate my question one last time, what formulas or strategies are using by the investor frequently, and successfuly?
This is extremely subjective, and the years need to be updated, but this just goes to show you how evaluating companies is more of an art than anything else.