Glossary
/Valuation
It is the process of figuring out what a company or an asset is actually worth, rather than blindly trusting the stock market price. You dig into its profits, growth prospects, and debt to calculate a fair price value. If your math shows the company is worth ₹200 but it is trading at ₹500, the valuation is heavily overpriced. Analysts use complex models like Discounted Cash Flow (DCF) or simple ratios, such as P/E, to do this. It is the ultimate reality check before buying any stock.