With so many stocks in the Singapore stocks markets, many investors definitely want to invest their hard-earned monies wisely on the best stocks. So how is a best stock or a good stock defined? To many investors, it is natural to speculate on some stocks which promise very high and sexy returns as they are coaxed by some great “turn around” stories or stories promising even more returns for the stocks. These investments often turn out to be “feedback” rather than achievement.
In my opinion, a good stock is defined when the price you pay is lower than the value of a stock. There are many metrics which defined value, but there are basically just three common metrics as far as I could do a quick recall.
The first is using some form of discounted cash flow to arrive at some future value of the stock based on current price ......