For investment managers and brokers, it further means resisting the pressure by peers and incentive compensation schemes to trade, sometimes in conflict with stated policies and without the knowledge or permission of the investor. The intrinsic value of an investment asset can be estimated according to agreed upon principles using a sound methodology. Using these online models, you can value any stock in any currency any time any place. The focus here is on investing primarily in common stocks and secondarily in bonds. A useful distinction also can be made between stock screening and stock valuation.
Screens eliminate passion, but they also eliminate judgment.
No matter what screening criteria are used, the resulting list of relatively underpriced stocks will include stocks that deserve to have low prices. The important question is whether these apparently underpriced stocks are really absolutely underpriced, and this is what value analysis is designed to answer. To determine whether a seemingly underpriced stock is truly underpriced for no reasonable cause, an exhaustive knowledgeable study of the company and its competitors is required. The relevant data are not generated by the market and do not change significantly during a month. Therefore, a monthly screening will suffice.