3 ways to work out if a stock is good value

The only thing you can really control in investing is the price you pay for an asset – but how can you tell if you’re getting a good deal when it comes to the price of a stock?

Stock graph showing upward trend
(Image credit: Getty Images)

With tariffs and trade wars and AI trouble in the tech space, the S&P 500 is down almost 10% so far this year (to 23 April). Global stock markets have also experienced heightened volatility. For some this is a time to panic. For others, a bargain buying opportunity.

When stock markets take a heavy tumble, more companies’ shares start to look cheaper, in so much as their price is lower than, say, a month ago. But comparing the share price alone is not the best way to determine a stock’s value.

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Laura Miller

Laura Miller is an experienced financial and business journalist. Formerly on staff at the Daily Telegraph, her freelance work now appears in the money pages of all the national newspapers. She endeavours to make money issues easy to understand for everyone, and to do justice to the people who regularly trust her to tell their stories. She lives by the sea in Aberystwyth. You can find her tweeting @thatlaurawrites