How to check stock less

How do you know if a stock is overvalued or undervalued?

The most well-known metric is the P/E ratio. A company that is trading at a lower P/E than its competitors may indicate that the stock is undervalued, whereas a higher P/E might suggest that the stock is overvalued.

What is considered overvalued stocks?

An overvalued stock has a current price that is not justified by its earnings outlook, typically assessed by its P/E ratio. A company is considered overvalued if it trades at a rate that is unjustifiably and significantly in excess of its peers.