How to Value Stocks & Make Smart Investments | Junaid Iqbal | @isave.mcbfunds

Your investment decisions shouldn’t be based on guesswork—understanding stock valuation is key to long-term success. But how do you determine a stock’s true worth? This episode breaks down the four essential valuation methods every investor must know!
<br? In this episode, Junaid Iqbal shares:

1- The four most effective methods for valuing stocks
2- How to identify undervalued opportunities in the market
3- Why some stocks trade at a premium & others at a discount

Watch it here: https://youtu.be/gLULdxrS-CU?si=BhklEaWxgRld_W88
Don’t just invest—invest smart! Watch now!

Thank you MCB Funds for supporting Pakistan & Counting.

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https://www.mcbfunds.com/digital-account/?utm_source=YouTube+&utm_medium=Video&utm_campaign=Investmentseries&utm_content=Overviewofinvesting

Time Stamps:
00:00 – How Do You Value Stocks?
00:02 – The Second Method: Price-to-Earnings Ratio
00:05 – Understanding Valuation with a Vending Machine Example
00:09 – Calculating the P/E Ratio (Price-to-Earnings)
00:17 – Stock Dividends and Price Calculation
00:20 – Understanding Dividend Yield
00:28 – Estimating Future Stock Potential
00:48 – Welcome to Pakistan & Counting
00:52 – What We Discussed in the Last Episode
00:56 – Today’s Topic: Stock Valuation Methods
00:59 – Four Ways to Value a Stock
01:03 – Method 1: Discounted Cash Flow (DCF)
01:09 – Example: Buying a Fruit Tree
01:18 – Predicting Future Cash Flows
01:27 – How to Adjust for Risk in Valuation
01:34 – Discounting Future Cash Flow for Present Value
01:50 – Why DCF is the Most Accurate Method
02:01 – Link to a Detailed DCF Explanation Video
02:07 – Comparing Present Value vs. Market Price
02:15 – How to Know if a Stock is Undervalued
02:31 – Simpler Methods for Stock Valuation
02:46 – Understanding Market Valuation Principles
02:53 – Mutual Funds for Stock Market Investments
03:05 – MCB Funds – Professional Investment Management
03:16 – Start Investing Digitally with MCB Funds
03:27 – Method 2: Price-to-Earnings (P/E) Ratio
03:34 – Example: Valuing a Vending Machine with P/E
03:52 – How P/E Ratio Works in Different Investments
04:30 – Comparing P/E Ratios of Cement Companies
05:20 – Why P/E Ratios Differ Across Companies
05:48 – Method 3: Price-to-Book (P/B) Ratio
05:50 – Example: Calculating a Factory’s P/B Value
06:14 – Why P/B is Used for Banking & Financial Stocks
07:05 – How P/B Ratio Reflects a Stock’s True Worth
07:19 – Meezan Bank’s Price-to-Book Ratio Example
07:52 – Comparing P/B Across the Banking Sector
08:36 – Method 4: Dividend Yield
08:40 – Example: Rental Yield vs. Dividend Yield
09:32 – Calculating Dividend Yield for Meezan Bank
09:47 – Comparing Dividend Yields Across Sectors
10:10 – Why Dividend Yields Vary Across Stocks
10:18 – Summary: Key Takeaways from the Episode
10:48 – Recap: 4 Stock Valuation Methods Explained
11:11 – How to Compare Stocks Using These Metrics
11:23 – Why Dividend Yield is Important for Investors
11:31 – Final Thoughts & Viewer Question
11:34 – Have You Ever Evaluated a Stock? Tell Us
11:44 – Outro

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