In case you were thinking otherwise the best stock analyser out there, is you. While that may seem like quite a farfetched remark to make, it is never the less true. You might be able to find what claims to be the best stock analysis software on the market, but it won’t be as good and as accurate as you can be. To properly analysis the value of a stock, you must look much deeper into a business that any automated machine is taught to do. So if you want to try out the stock market then you might want to learn one or all of these techniques.

Working out the net capital and net current asset value

I know that the title looks a little daunting, but once you have learned the principles of looking over a balance sheet. you will be able to do this without much fuss. The principle is that you use your stock analyser brain to work out, which companies have high priced assets. A company with high assets is less risky than one that doesn’t.or if you want to take help from stock analyser software buy good one that has good testimonials.

The Growth valuation formula

This one seems a bit obvious, but you invest in companies that look like they have growth to come. This formula means you need to pay a little more attention to the company. You want to check out the news and their websites to see if they have any big plans or products coming out. If they do then chances are if the product is successful that the stock prices will go up. This is something that stock software is unable to work out, as it takes a lot of wide range research.click here to read Top 15 profitable investing ideas

Discounted Cash flow

Discounted Cash Flow is a pretty easy way to work out a stock value. You look into the company’s finances and then invest in the one that has a free cash flow. This means money that isn’t going back into the company or if you like actual profit. If a company is making actual profit then they are a good investment, providing the price of the stock is good.

Reverse discounted cash flow

Reverse discounted cash flow one is a little trickier than the last. As this time you reverse the method to work out the market expectation. Which means you will be trying to work out what the market expects it to achieve rather than what it is already achieving. These techniques are a little hit and miss, so if you are new to investing you might want to avoid this one for a while. If you are desperate to give this way a go, you might be able to find some stock analysis software on the market that will do it for you.

Absolute PE model

This method is used by stripping back the company. You look at the fundamentals that it has to offer and then use them to multiply the stock value.

Ebit multiples valuation

This method is actually used a lot on Wall Street. All you do is work out the income status of the company and then devise the stock price from that. Again you might be able to find some stock analysis software to do the math for you.

Asset reproduction value

This method works on what assets they have again. However you work out how much the company would cost to replicate, if the replication is worth as much as the company is making, then they are protected by their assets, which make them a sure fire bet for you. There will not be any stock software capable of doing this method for you however.

Earning power value

This technique does not factor in any growth the company might have and is best used alongside the asset reproduction value method. You should be able to find some stock analysis software to do this for you.