In retrospect, everything is always easy. Today, everyone knows that the new market was massively overvalued. can also be about the crash of the solar stocks today easily say “Sure were overvalued at the price-earnings ratio”. But Facebook is then valued at a PE ratio of around 70 in fiscal year 2014?

Overvalued stocks

The share of Beate Uhse AG was oversubscribed 64 times with the introduction in 1999, but has since lost massively in value.


  •  Overvalued stocks
  •  In theory, everything is simple
  •  These data help in finding
  •  How do I recognize the future potential?
  •  Worth searching at all
  •  Conclusion
  • is IQ Option working in 2018


    • KGV as an indication
    • Often Hot Stocks
    • Also, bad future prospects as a reason for overvaluation
    • Efficient market hypothesis denies overvaluation


strategyEspecially in the Value strategies play categories such as undervalued or overvalued a major role. Behind this is the recognition that the value of a stock is measured in the profits of the company in the long term. In the short term shares may Read in-depth etoro review before start trading rise though, although the company is losing money, but in the long term only profitable companies can pay high dividends and offer gains.

For this, however, investors have one hand assess the current situation of the company, on the other hand, the future prospects. If the price is relatively low, although both are good, the company is undervalued, the course despite poor data is high, the stock is overvalued and should be sold as soon as possible.

Overrated is a stock when the price compared to the potential is too high


DemoA few data will help to get a first impression of the price of the stock. Perhaps the best-known indicator is the price-earnings ratio (PER), it indicates that Wievielfache of the profit has to be paid for the stock. The higher the price-earnings ratio, the more expensive the stock.

Had corporate profits stable, the observation at this point would be almost over. At best, one would have to take a look at the dividend yield, ie the amount of the dividend per 100 euros investment. Depending on whether you prefer a regular payout well researched plus500 review or reinvestment, you could then choose stocks with similar price-earnings ratio with a high or low dividend yield. The price-earnings ratio would still like high because stocks with low price-earnings ratio would rise in the course, such a high fall until all shares have similar price-earnings ratio.

Undervalued stocks KGV

Price-earnings ratio selected shares in 2014. Source: Own graph with data from OnVista.

But in practice, a company such as the electricity supplier RWE prospects other than, say, Facebook . This is also reflected in different price-earnings ratio down, because what use current high profits when on sale in the profit and loss account as early as next year, a loss?

The price-earnings ratio is an important indicator in finding overvalued stocks, but alone is not a reliable measure.


NewsFor the future of a company, there is little meaningful data. The price-to-cash flow ratio may say something about the ability to invest. In addition to winning also the depreciation is taken into account, the cash flow is therefore the profit + depreciation. For although the recognized in the balance sheet impairment reduced profit, but it means no outflow of capital. Therefore, this money is for new investments available.

But what use is a lot of money in the war chest if it operates on a non-promising market, or has a bad management? For a glimpse into the future, it therefore needs imagination. You should also familiarize yourself with the news about the company and the corresponding market. Well it is if you know the product itself. Tesla is a threat to BMW and Co or the manufacturer goes the way of the DeLorean Motor Company LTD? That carmaker whose car early 1980s much attention excited (and immortalized in 1985 in “Back to the Future” as a time machine), but it was insolvent after less than two years despite millions subsidies the British government? Knows best who the car knows, DeLorean went example, not only because of the high price,

On the future prospects of a business, there are few data from experience. The quality of management, the product and the market environment play a major role


anfaengerFinding overvalued stocks is therefore difficult panaceas do not exist. But it may be worth first look at fundamental data to throw as the PER and then to ask the question whether the price is justified. Especially hot stocks , so fashion stocks are often overvalued. For many investors hope for a new success story à la Google, just think of the many failed hopefuls as Kabel New Media and Solarworld. But also very classic, boring stocks may be too expensive.

Bitcoin step-by-step guide

In this step-by-step guide we tell you everything you need to start in the world of crypto currencies. We create together a wallet and buy our first crypto currency (Bitcoin BTC) .

What is a Wallet?

wallet for Crypto currencies is something like a wallet and an online account for digital currencies together. A Wallet enables you to pay by Crypto Currencies to send money to other wallets and of course to get even. The best way to compare it with a Paypal account.  find out all the facts about Bitcoin code

A provider of such wallets is Coinbase. Why Coinbase?

Coinbase is one of the largest and best known providers of online wallets for Crypto currencies. He enjoys a very good reputation in the community and offers the possibility of Bitcoin, Litecoin or Ethereum via credit card or bank transfer to buy.
Another advantage is the low barrier to entry, because the application, but especially the handling is very easy and now also designed intuitive.
In addition Coinbase meets all safety aspects that are part of our standard (two-step authentication, verification of identity) .
So, let’s get right to the registration begin!

How to buy my first Bitcoins?

1Sign in Coinbase
Click here -> save $ 10 Bonus now!
2finish setup
3Buy Bitcoin
4Download DCR Starter Guide
Bitcoin buy DCR instructions cryptocurrency

Buy Bitcoin | secure DCR Bonus

Now click on the link and buy your first Bitcoins . You get than this invitation link from your Crypto guide an exclusive bonus on your first deposit! people want to steal your money

Bonus Buy & Bitcoin

You did it! Now you’re officially owners of Bitcoins (BTC) and ready for the next step!

bitcoin crypto buying guide dcr
We advise you to a separate Bankonto credit card to create. You have so always overview of all transactions and the most important thing:
In a transaction with a credit card you have a much shorter waiting time , so you can react quickly if necessary!

We advise you to the N26 checking account with free Mastercard .