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The valuation of the global stock market has recently been an interesting topic. Many investors wonder if the stocks of US companies are too expensive compared to their historic prices. Which opinions are there regarding European stocks? Are the current stock prices attractive? Which indicators are used by analysts to determine the valuation of the stock of a company?
Before going into the topic of discussion, we must understand the theoric process for the valuation of corporate stocks and how this value is compared to the perception of markets regarding current and actual stock prices. For more information, please refer to the following document: