How to Find Undervalued Stocks to Buy (5 Simple Steps For Beginners)

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In this video, we go over the 5 simple steps to be able to understand company valuations, market fluctuations, and how to find cheap stocks according to many different valuation criteria that I discuss. The market will often UNDERVALUE or OVERVALUE companies in the short term, but it doesn't last long and company valuations eventually revert to the mean (i.e. their intrinsic value). There is certainly a difference between market value and intrinsic value, and we want to take advantage of buying companies when their market value is below their intrinsic value! As Warren Buffet would say, "price is what you pay, value is what you get".

Make sure you watch the ENTIRE video to find out about all of the different techniques I use to analyze stocks to find if they are undervalued and how to specifically find undervalued stocks across the entire stock market!

Anyways, thank you for watching! If you did enjoy, please hit the LIKE button to support my channel – I would really appreciate it. Also, be sure to SUBSCRIBE for more weekly content on personal finance, business, and investing!

Please note that I am not a financial advisor. I create these videos for educational and entertainment purposes only. Before investing, make sure you perform your own research and understand all of the risks involved!

Cheers,
Investing Engineered
Nick Peitsch, E.I.T.

[NickPeitsch]

Thanks for watching! What undervalued stocks are YOU buying today?

[mathebulamkhize]

Does anyone have any idea which stocks may be experiencing major growth this new year season? A lot of people have been talking about a January bounce. I recently sold my Boca Grande, Florida, house, and I want to invest a lump sum before equities recover in the stock market. Is now a good time to buy or not?

[jerrytong]

Hey man I really like the quality of the videos. Keep it up and I can see you hitting 10-20k subs in no time!

[williammason]

Knowing how to go about calculating the intrinsic value of a company would be a great video.

[pamlibey]

Great tips 👍 Value investing is something I’d like to look into further

[ZacharyLaid]

Looks like a lot of undervalued stocks are appearing now!

[EElia-bjtp]

Thank you for this informative video. Could you please make a video on Free Cash Flow and Capital Expenditure, including how they are calculated?

[Luigi-mhzh]

Well, return in equity is not really a good measure. I mean, it’s good if the current ratio (asset/liabilities) is high and the book price is similar to the market price. Other wise you could have a company with a lot of liabilities, so a equity really low, and this ratio is high. In fact in apple with am equity of 63B and revenue of 366B it’s high but then you have a market cap of almost 3T. So if you buy $1k of apple stock and the company gets liquidated you get only 21$ of the original $1K you invested in. Otherwise there are other company where the market cap is lower than the equity of the company, so if you invest $1k in a company with market cap of 100b and the equity is 150b and gets liquidated you get in return 1, 5k$

[genzinvesting]

New sub
Great video
Currently I’m adding to my apple position
And I am also adding Johnson and Johnson to my portfolio

[TechPeeves]

I know I'm late but to answer your question, I would definitely want to see you demonstrate how you calculate intrinsic value of a company in your next video....whenever you are back.

[ranhaber]

I hope people bought many stocks when the video uploaded. Everything went up so quick...

[RyanGiffin]

Knowing your industries is very important! Crazy how we do not learn about Value investing in school. Maybe a little less George Washington and more Warren Buffet.

[hardikstricksandhacks]

Very good.... What if under valued stocks gets further and further more undervalued after buying ???.. Also, please explain whether we can add any technical analysis for entry and exit (though it is medium-long term investment).

[Wydjonny]

I can always use more knowledge. Id love to hear how to calculate intrinsic value

[ThinkForYourselfFriends]

I am so new to this. It's really confusing and intimidating

[kelewiwu]

Very good video. It is by far the best video i have watched so far because of the details you provided on how to determine value of stocks. It is very clear you are an engineer :-). Engineers are always detail oriented. Much appreciated. I know such detail may not be everyone's cup of tea but it is good to have the knowledge, whether one uses them is another issues.
Few questions:
1. You said a dividend payout ration of <60% is good. What value should one be looking for from the Free cash flow ratio
2. Which website did you use to demonstrate the dividend payout ratio vs yield in the video?
thanks

[alsg]

Great pointers and content!! But why do you bounce so much when speaking 🤣🤣?? It was kind of distracting to see and made it hard to listen at the same time

[DoomRanger]

The most important takeaway in my opinion especially from the recent influx of meme stocks is that price means almost nothing

[IanSeabrook]

Very informative, thank you! I always hear these terms thrown around. It’s nice to see explanations condensed down into one video.

[ProfRoofs]

You got a huge list and with big companies because this was posted March 9, 2020 ... halfway down the Covid crash ... everything was undervalued. However, this will be helpful now. Thank you!