CELG - The Smart Way To Find Undervalued Stocks
Value investing is not just about buying stocks with a low price to earnings ratio, that’s a too simplistic and ultimately myopic approach. The true essence of value investing is buying a company for a market price below the intrinsic value of the business. Growth is one of the variables you need to consider when estimating that intrinsic value. This means that a stock with a comparatively high price to earnings ratio can be undervalued if earnings are expected to grow rapidly enough.
Warren Buffett is clearly one of the world’s leading experts in value