What is Stock Valuation?

Amit is relatively new to the world of trading. He often comes across the term ‘Stock Valuation’ but has never fully understood it.

So, here’s a basic insight into the concept:

Stock Valuation entails several methods that are used to value a stock

2 most commonly used Valuation methods are – absolute & relative.

The Absolute Valuation

models attempt to find the true value of an investment based only on the company’s fundamentals like dividends or its cash flow.

Relative Valuation

models operate by comparing the company in question to other similar companies & involve calculating multiples or ratios, such as price-to-earnings multiple.

Generally several valuations are done to create a range of possible values for a given stock.

With a better knowledge of the valuation model, Amit can now make informed investments decisions & start online share trading with Angel Broking as his trusted partner.

Become a Value Investor by opening a Trading & Demat Account with Angel Broking


Vinod & Venkat are best friends but their habits are different.
Vinod is tech-savvy & does everything online, Venkat on the other hand, prefers traditional methods over online transactions.

Online Trading Account

Likewise, their stock trading methods are also different.
An avid trader, Vinod prefers trading online. Through his online trading account he can track the market & buy or sell stocks himself at anytime from anywhere. He also receives expert advice, research reports & live market updates through multiple trading platforms accessible via his desktop, tablet & mobile phone.

Venkat, however, prefers offline trading since it gives him the opportunity to garner first-hand advice. So, when Venkat decides to buy or sell a stock, he calls his broker, who guides Venkat on the trade with professional expertise & then places the trade on Venkat’s behalf.

Offline Trading

Online or offline – Choose your trading preference – at Angel Broking. You now understand the the comparison of Online Vs Offline Trading Account