How to do the valuation of share price of a company,means in future the share price will increase or decrease?

Question

How to do the valuation of share price of a company,means in future the share price will increase or decrease?

Answer 1

1 Calculate the intrinsic value of share by DDM (Dividend discount model), compare the value with current price.

If intrinsic value> current price then share is underpriced

if intrinsic value< current price then share is overpriced

2. Follow chart patterns, for short term use weekly, daily charts and for long term use monthly, yearly charts.

For the chart patterns use candle sticks, moving average, relative strength.

3. For intra-day traders go with demand/supply ananlysis.

Answer 2

If you know the company and familiar with the business, then the DCF (discounted cash flows) and/or DDM (dividend discount model) are good models, look at the chart and compare short and longer moving averages to time your entry/exit, look into correlation with other stocks/indexes/funds to find a hedge (in case) and pray that you have maid the right decision and wait.