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Undervalued Stocks in India
A stock is undervalued when it is trading at a price below its true value, also known as intrinsic value. The intrinsic value is the true value of a stock, its actual worth, irrespective of what investors and speculators are willing to pay for it.
Sometimes, due to external factors (like negative market sentiments), the price of a stock deviates from its intrinsic value (true value). It can trade at a discount to its peers or the industry average. Usually, this is a good time to buy the stock, as in some cases, the pessimism is overblown, and there you might make good returns.
However, other times this pessimism is warranted, and it could be due to various reasons. Maybe, the company has succumbed to tough competition or is a victim of rapid technological change or is run by an incompetent and unethical set of managers.
Whatever the reason might be, such companies that fail to perform despite their inexpensive valuations eventually become value traps.
The key to sidestep this is by doing your research. Look for fundamentally strong companies available at a discount to their true values.
There are several methods to find the true value of the stock. Valuations tools like the commonly used Price to Earnings and Price to Book can help you find if the stock is trading at a discount to its historical values or peers.
You can either do this or find the most undervalued stocks on Equitymaster's powerful stock screener.
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The small-cap index is trading at a support area of the trendline, and the moving average indicates this is the good investment opportunity.
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Find out the top 5 fundamentally strong companies that pay dividends and are available at a discount.
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These six stocks are the most undervalued stocks in the market right now.
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The recent stock market upheaval has bogged down shares of these 5 bluechips. Is it a good time to buy them?
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5 Most Undervalued Midcap Stocks to Add to Your Watchlist
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These undervalued midcap stocks could be the ideal for a value investor's portfolio. Take a look...
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Looking for Undervalued Stocks? Check Out these 4 Companies Trading at Attractive PE Ratios
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These stocks, trading at attractive valuations, could be the potential multibaggers of tomorrow.
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How to Use PE Ratio Like a Stock Market Pro
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Rahul Shah discusses the right way of using the PE ratio.
If You Want to Find Great Stocks, Don't Look at its PE Ratio
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Investors sifting through current PE multiples of stocks will never identify this hidden EV opportunity.
You Will Never Find this Undervalued Stock by Looking at PE Ratios
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Investors sifting through current PE multiples of stocks will never identify this hidden EV opportunity.
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Wait! Don't Buy the Smallcap 'Dip' Just Yet
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Why this may not be the best time to buy smallcaps.
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What Warren Buffett Says About Stock Market Sell Offs. And Why You Need to Follow it Now
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The best investor in the world can guide you in a market correction. Benefit from his wisdom...
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The 10 Best Penny Stocks in India to Add to Your Watchlist
May 22, 2022
These penny stocks have a high potential to deliver good returns in the long term. Watch out for them.
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5 Most Undervalued Smallcap Stocks to Add to Your Watchlist
May 12, 2022
Small-cap stocks can deliver high returns when the economy is in a revival mode. Getting them at a discount can add to your gains.
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5 Most Undervalued Bluechip Stocks to Add to Your Watchlist
Apr 27, 2022
Bluechip stocks are a must have in your portfolio to help you weather even the worst of economic downturns.
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Top 5 Undervalued Smallcap Stocks to Add to Your Watchlist
Dec 31, 2021
These stocks have been consistently profitable and have attractive long term growth prospects.
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The 5 Most Overvalued Stocks in India
Dec 13, 2021
Finding overvalued stocks can help you implement investing strategies such as selling a stock.
What Sparked an 8% Rally in ITC Shares Today?
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ITC did not participate in the rally after the second wave and continued to underperform its peers. Is this about to change?
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We take a look at a stock investor's capacity to stomach occasional losses on stocks.
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