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There are different ways to evaluate a stock and if it’s worth the price.

However, from my experience the market price is right in nearly all cases if the stock is traded regularly.

Like all titles from the DJIA or Nikkei 225.

Is evaluating stocks just a loss of time if the stock is traded very much?

How can you ensure that your evaluation is more precise than the market ones which consists of the evaluation of thousands of people and professionals?

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    The market price is what the stock is worth at the time, because that's the price at which it's being transacted. There is a multi billion dollar industry dedicated to securities research and enterprise valuation. The idea is coming to a conclusion regarding what you SHOULD pay for a specific security and whether you think the market has mis-priced something. – quid May 30 '17 at 17:35
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    And all the analysis including yours will be biased based on your assumptions. – Victor May 30 '17 at 20:55
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Is evaluating stocks just a loss of time if the stock is traded very much?

Not at all!

Making sound investment decisions based on fundamental analysis of companies will help you to do decide whether a given company is right for you and your risk appetite.

Investing is not a zero-sum game, and you can achieve a positive long-term (or short-term, depending on what you're after) outcome for yourself without compromising your ability to sleep at night if you take the time to become acquainted with the companies that you are investing in.

How can you ensure that your evaluation is more precise than the market ones which consists of the evaluation of thousands of people and professionals?

For the average individual, the answer is often simply "you probably cannot". But you don't have to set the bar that high - what you can do is ensure that your evaluation gives you a better understanding of your investment and allows you to better align it with your investment objectives.

You don't have to beat the professionals, you just have to lose less money than you would by paying them to make the decision for you.

  • Love that last line! – timday Jun 25 '17 at 15:03

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