How can I spot an undervalued stock?

Hi,

To spot undervalued stock, you can screen them based on valuation method but my suggestion is to focus on finding good companies first. For me, valuation is always the last when it comes to analysis.

Over the years when I invest, I have been trying to figure this question out. That was when I created my first scorecard on July 2015. After many amendments, the scorecard has evolved into the Ultimate Scorecard.

My first post on the scorecard method is on Chuan Hup Holding (http://tubinvesting.blogspot.com/2016/02/chuan-...) in Feb 2016.

The main thing about the scorecard method is that it will provide a conclusion by giving score to various different criteria inputted with the latest financial data of the company.

This is somewhat similar to stock screening using ratios, but it will provide a conclusion. For the Ultimate Scorecard, it will total up the scores of the various criteria and if it scores 8 or above, it is undervalued.

However, there is always the flip side to this kind of investing. As much as you will be unbiased, you should not investing in all the stocks that are deemed undervalued. You have to still do your due diligence and understand what the company is doing.

Sometimes, as people say, there is a reason why a stock is undervalued.