Question

How do investors arrive at a valuation for companies? what metrics do they usually use?

Answer 1

If the investor invest the money in shares or debenture of the company than the company gate financially support by the public & can use that money for further use in invest somewhere else

Answer 2

Answer:

financial ratios such as price-to-earnings, price-to-book, debt-to-equity, and price/earnings-to-growth to discover undervalued stocks

Explanation:

Value investors use financial ratios such as price-to-earnings, price-to-book, debt-to-equity, and price/earnings-to-growth to discover undervalued stocks. Free cash flow is a stock metric showing how much cash a company has after deducting operating expenses and capital expenditures.