As every investor will inevitably ask; which stocks should they be buying? An investor needs to know which stocks will make them money and return healthy revenue. Moreover, an investor has to know how to value stocks. In short, an investor has to aim at those stock prices that have a lower value – that is a lower value than the intrinsic value (true price) so that investment will eventually become a profit making money spinner.
The Dr. Stocks stock value calculator will be the key to helping you find those stock values that are priced lower than they really should be as it searches key information about a company that could well determine a healthy boost in its stock prices in the months to come. The valuations are not just some wild guess or forecast but take into consideration a number of factors which include liquid assets, future debts or revenue earners and any prospect of a takeover or a deal in the pipeline within that business that could (and should) adversely affect the company's stock price.
So, finding and then buying stocks with lower current market values than the calculated intrinsic value, is exactly what you must be aiming for. It doesn't matter which commodity you decide to invest in, as long as the principle prospect for profit equates to that formula then that is where you should be aiming.
The present or current stock price is the price you would pay today, or right now for your stock. Intrinsic value is the value that includes any future and expected incoming cash or revenues expected into that company. In truth, the intrinsic value is the real value of a company and not the current value, so investing in a stock that has a present value that is much lower than its intrinsic value will reap the revenue you are so longing to find.
Likewise, if you see a present value that is the same as the intrinsic value, or even higher than it, then you must avoid investing in these stocks, else you will surely make a loss or at best break even.
But don't just go for the first stock you find that has a lower present value than the intrinsic value. The reason you should do this is because later down the line you will more likely find a much better deal with a stock price that has a far greater difference in its present value versus its intrinsic value.