“There is a saying that you don’t judge a stock by its market price.
Many first-time investors make the mistake of evaluating a stock whether it is cheap or expensive by simply looking at the share price.
For example, a stock may be perceived expensive when its share price is trading at over a thousand pesos per share while a stock may be considered cheap when it is selling at less than one peso per share only.
Similarly, a stock may be considered a bargain when its share price has fallen by over 20 percent as compared to a stock seen as overpriced, whose share price has increased by the same percentage.
The tendency to evaluate the worth of a stock based on share price alone can be risky because…”

Read More Here => https://www.entrepreneur.com.ph/startup-tips/financial-adviser-5-simple-financial-ratios-every-stock-market-investor-needs-to-know-a23-20180313-lfrm

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