Stock valuation is the process of determining the intrinsic value of a company's shares based on various financial metrics, future growth prospects, and market conditions. This concept is vital for investors to decide whether a stock is overvalued or undervalued, influencing their investment decisions. Understanding stock valuation helps investors make informed choices about buying, holding, or selling stocks, which ties directly into how behavioral factors can sway security selection.
congrats on reading the definition of Stock Valuation. now let's actually learn it.