When you buy a stock, you need to know what the company is worth, either in absolute terms or relative to other companies like it. If you do not know what a stock is worth, how do you know what a fair price to pay for it is? This is a big issue with novice investors who jump in the market with no care as to the price at which they are investing. They buy stocks that are overvalued and leave little-to-no room for abnormal long-term returns. We always want to find undervalued stocks and buy those for our portfolios for the best returns. Today, we will discuss:

1. Why we value stocks

2. Absolute valuation methods

3. Relative valuation methods

4. Where valuation fits in the investment decision

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Don’t forget to like, subscribe, and leave comments below as I would love your feedback. Be sure to check out my website (www.mnowithdylan.com) where you can get more information on my financial coaching services and more, the podcast of these shows if you are more of a listener than a watcher, and follow the show on any social media outlet (FB, Twitter, & Instagram) @mnowithdylan (Money’s No Object with Dylan Howell) [All links in description]. Tune in tomorrow for a better understanding of what type of risk is inherent to single stocks. Don’t forget to check-in every weekday (Monday-Friday) for new videos which will be uploaded each day at 6 a.m. CDT. Thank you, guys, for tuning into this episode of Money’s No Object. I’m Dylan Howell. God Bless!

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(Please keep in mind that I am not a financial advisor. I create these videos for educational purposes only. You and only you are responsible for the investment decisions that you make.)