How to determine which valuation method is suitable for a stock?

To determine which valuation method is suitable for a stock, you should consider the following factors:
1.Company Industry and Business Model: Different industries and business models require different valuation methods. For example, a technology company may benefit from a valuation method that takes into account future growth potential, while a utility company may be better valued using a discounted cash flow model.
2.Stock Price and Trading Volume: If a stock is highly volatile or has limited trading volume, it may be more difficult to accurately determine its intrinsic value using certain valuation methods.
3.Market Conditions: Market conditions can affect the suitability of different valuation methods. In a bear market, for example, it may be more appropriate to use a conservative valuation method.
4.Investment Purpose: Your investment purpose can also guide your choice of valuation method. For example, if you are a long-term investor, you may be more interested in the company's intrinsic value, while a short-term trader may focus more on technical analysis.
It's important to consider multiple factors and to use more than one valuation method to arrive at a better understanding of a stock's value.