Finding under valued equities

Marine_life

I actually think researching can be fun.

You could start here:

http://shares.telegraph.co.uk/sectors/

Gives some good overviews and then when you drill in by sector you can look at compartive valuations. Of course there is often a reason why a share deviates from the norm but its a useful start point.

DYOR

EdGasketTheSecond

Well Petrofac is pretty undervalued by standard measures right now; PE of under 6 and a yield of over 13%. Fill yer boots; if you don't mind the SFA investigation which may or may not come to anything but even if the fine were similar to that of Rolls Royce, it wouldn't warrant the current low share price of PFC.

steampowered

It is a combination of things really. You have to look at the key financial indicators in the round. If you read a few opinion articles suggesting a few undervalued shares, read through their logic and you'll get an idea.

In larger companies, events often give an opportunity, as markets often overreact to short term events. For example it became clear to me that BP was undervalued shortly after the Deep Water Horizon incident - that was a nice profit.

cashbackproblems

EdGasketTheSecond wrote: »

Well Petrofac is pretty undervalued by standard measures right now; PE of under 6 and a yield of over 13%. Fill yer boots; if you don't mind the SFA investigation which may or may not come to anything but even if the fine were similar to that of Rolls Royce, it wouldn't warrant the current low share price of PFC.

Thanks your right Petrofac looks a great buy just nee to watch how the SFO thing pans out. Will be my next buy i think

cloud_dog

cashbackproblems wrote: »

Thanks your right Petrofac looks a great buy just nee to watch how the SFO thing pans out. Will be my next buy i think

7% of the stock is out on loan, so just be aware.

jimjames

Linton wrote: »

I dont think the "undervalue" concept works very well for funds....

It might not do for funds but I think it can work well for investment trusts as you can see immediately what the discount is. Back in 2009 some ITs were on absolutely huge discounts, I seem to recall 80% or so in some cases, suggesting that the company would collapse or have no worth.

serko

It all depends on the level of risk you want to take on, how much money you have to diversify, and how much research you want to do. I suggest reading some investing books.

From the top of my head; one up on wall street and free capital come to mind.

I myself use a mixture of methods low p/e high yield for example. As well as believe in growth prospects of the product/business for loss making or small companies. Look at ASOS and FEVERTREE as an example of what could happen. Obviously this is very risky and you have to accept that the majority will not work out.

Peter Lynch expects 6 out of every 10 stocks he picks to underperform and possibly even for bust. However the remaining 4 will do so well that the overall performance of the portfolio will outperform the market. This strategy isn't for the faint hearted though.

elephantrosie

awesome thread

Pincher

A diamond ring bought for £10 at a car-boot sale 30 years ago is expected to fetch £350,000 at auction.

http://www.bbc.co.uk/news/uk-england-london-39995908

Watch Antiques Road Show, to pick up some tips.
Repeats of Lovejoy should give you ideas, too.

NASDAQ: TSLA

Tesla is going up AGAIN!

It's US$325.50 .

You will pay $326, because you think some idiot will buy it off you for $327, not because it's undervalued.

Apodemus

Instead of looking for "undervalued" stocks and having an over-riding need to "beat the market", what is wrong with simply looking for investments that have a fair value and that will meet your financial goals?