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Published On: Fri, Mar 29th, 2013

Undervalued

The opposite of overvalued, an undervalued stock price is not justified by its anticipated earnings, does not coincide with price/earnings (P/E) ratio and is below the stocks’ true value.

By utilizing a wide variety of statistical analytics, including reviewing a company’s portfolio of financial statements and studying the business’s fundamentals like cash flow, profits and capital management, will help uncover the intrinsic value. Due diligence can help uncover hidden reasons why the value might be lower than expected. Finding stocks that are undervalued and out of market favor may offer deals for bargain hunting investors.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

 

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