Today we’re getting into the numbers so you can quickly assess, calculate and see if a stock is overvalued or undervalued in under a minute.
In the investing and start up world it is called a risk rate or discount rate. It’s used by investor and analysts to quickly gauge a company, whether private or public, and see what the “risk” is of the company.
However, in the case of a publically traded company, you can easily find and calculate the risk rate and see how the market is judging the risk of a company.
Quite often you’ll see the public overvaluing and undervaluing companies. That’s because the public has the tendency to trade on emotion and momentum, rather than the fundamentals and financials of a company.
After watching this video, you’ll know how to calculate the risk rate of any publicly traded company in under a minute.
Song: Ehrling - You And Me (Vlog No Copyright Music)
Music provided by Vlog No Copyright Music.
Video Link: https://youtu.be/8HJSl7AiJNg
Sound Effects: Mark DiAngelo from Soundbible.com