The stock market has been on a wild march higher this year — driven by the White House's shifting trade policy, geopolitical concerns, and conflicting economic data. The barrage of headlines — both positive and negative — is creating an intimidating backdrop. The good news? The way to value stocks stays the same, no matter the market.
It's a critical part of the investment process. Even though stocks move fast these days, and it can be hard to keep up, investors need to remember the old adage: Price is what you pay, value is what you get. If you want to be sure you aren't paying too high a price for a given stock, you had better know how to value it. Only then can you determine whether a stock is overvalued, meaning you're paying too much; fairly valued, meaning you're paying a fair price