How to spot wrongly priced stocks like Lo Kheng Hong (PBV & PER)

    Hello everyone. See you again Luna. Welcome to our article on money. As the name suggests, we created this article specifically to talk about all things money.If you are interested in talking about money, please subscribe to this article for the best articles from us. Don't miss it. Now, I would like to talk about how to choose bargain stocks. I hope you find this article useful, especially if you are new to trading and investing in stocks. I think that I want to do it.

How to spot wrongly priced stocks like Lo Kheng Hong

    Therefore, undervalued stocks are stocks that are priced low relative to the value or worth of the company itself and have undervalued maturities. Don't just look at the price just compare it to the value of the company itself.

    Perhaps many of you look at financial reports because you can't afford to go first after being presented with hundreds of pages of company financial reports, not to mention the many numbers and terms that confuse you. Stopped thinking about financial reporting. Start small, do nothing and get instant access to the latest financial reports. There are many platforms that provide corporate data that you can use. B. Also means securities applications (eg, future securities hot).

    Business Platforms or Stockbit Platforms summed this up.The data you need is my advice.Beginners can take the time to learn from the data available on these platforms.Try analyzing your financial reports. Okay, I'll do that in a minute. You can use the data in to determine if a stock is cheap or expensive. Of the cheap stocks you need to look at, if he knows there are two metrics, the first is the price-to-earnings ratio or commonly abbreviated to PER. Abbreviated to-book ratio or more commonly PBV ratio, let's take it one by one. What exactly is this rate of return or PER?

    Simply put, P/E is a measure that compares a stock price to a company's ability to generate profits. Now turn your attention to your keywords, which are your company's ability to generate profits. How can we know this ability? Now, by dividing net income by the number of shares issued as a result of that payment, we can understand a company's ability to generate profits. Coming back to PER, the definition of PER itself is the price per share divided by his net earnings per share (or EPS as we just discussed).

    Since 10x the price per share means the company is 10x the ability to generate earnings per share, PER data can be obtained instantly from stock platforms such as RTI Business and Stockbit, so 2020 The PER BCA, such as January of the year, no longer needs to be counted. 30.4 times, PER Astra International 13.5 times, PER Unilever 43.5 times, etc.

    Oh yeah, his P/E ratio generally fluctuates with price movements and pressure from the company's management. The lower the P/E, the cheaper/undervalued the stock, but the higher the P/E, the higher the stock price, yes. How high do you think it is?

    To answer that, we really can't have the same benchmark numbers for all sectors of the economy. One way to see how high and low a P/E benchmark is, is to compare a company's P/E to the average P/E of other companies. There are also similar industry opinions from experienced traders and stock investors, and it is considered a common benchmark for Specify PER. high or low limit. In general, many traders and investors at this time benchmark at 10x. This means that if the P/E ratio of a company is less than 10 times, the price is cheap, and if the P/E ratio is over 10 times, the stock price is low. Stocks are overpriced, but this is only based on the general opinion of traders and investors. On the other hand, P/E is just one of many approaches that can be used to measure whether a stock is overpriced. You also have to remember or cheap.

    You don't have to understand that not all cheap stocks are good and worth buying. Other aspects such as income, debt ratio, tax burden and wealth should also be considered. Remember what it takes to look for cheap/undervalued blue chip stocks, not cheap cheap stocks. The second commonly used metric is the PBV ratio (price to book ratio).

    Simply put, the PBV ratio is a metric that compares the stock price to a company's net worth. The keyword is the company's net worth. How can I find out about this net worth? This can be found by calculating the company's total assets minus the company's total liabilities/liabilities.

    The result of this reduction is also called the company's equity, or more commonly the company's net book value or net assets. Now let's return to the definition of PBV. PBV is the price per share divided by the capital per share. For example, if the price B per share is Rp 1000 and the capital per share is Rp 2000, his PBV ratio of the company will be 0.5. In other words, only the stock price is evaluated. Half compared to the value of the stock, or half the value of the company's net assets if the company's PBV is 1x, which means the stock price is the same as the stock value, so the lower the PBV ratio , the lower the stock price. Look at the company's net worth in this light. You already know that you can use a company's P/E to PBV ratio to determine if the stock is overpriced or underpriced, but keep this in mind.

    I think I've already mentioned that the PER and PBV ratios are just two of them. There are many metrics you can use to assess whether a stock is worth buying. Actually, we still have to see it. There are many other aspects of stock trading, such as economic conditions, corporate debt management, and related industry conditions.

    This topic will be covered in detail in the following articles: Ok, that's all the information I want to share. I hope this article is useful and instructive for all of us. Write in the comments about the world of finance from us this time. See you in the next article. There are endless things to talk about money, so stay with articles that talk about money

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