1 Price is the most important factor to use in relation to value.
2 Try to establish the value of the company. Remember that a share of stock represents a part of a business and is not just a piece of paper.
3 Use book value as a starting point to try and establish the value of the enterprise. Be sure that debt does not equal 100% of the equity (capital and surplus for the common stock).
4 Have patience. Stocks don't go up immediately.
