None of these tools is perfect
None of these tools is perfect as a valuation device,
but they are definitely superior to just carrying out judgement by speculating.
When there is any doubt, moderation should be employed in the choice of the right
i) P/E ratio,
ii) dividend yield, or
iii) net asset value.
It is also advisable to find out the reasons behind the magnitudes of the figures you deal with.
By David Opoku
