Abstract
The valuation of common stock has been a subject of broad interest for more than a century. If you buy a stock with an increasing trend, you will make profit. There is an obvious approach to buy stocks that can help you make money. Identify stocks that are undervalued. Then, buy these stocks in the expectation that the other investors will eventually realize the inherent value in the situation, and buy the stock causing it to rise. Nothing could be simpler. Just identify stocks that are undervalued, buy them, and wait for the market to catch up. The only problem is that the analysts in that domain have been trying to devise methods of identifying undervalued stocks for many years. A large number of methods have been devised. This paper will summarize some of the approaches. None of them has proven to be foolproof, but fools have applied all of them over the years.
