How to make stock predictions?
Methods to Predict Stock Price
One way we can predict the stock price is by evaluating stock’s intrinsic value. It is a very difficult skill. Only people like Warren Buffett, and Peter Lynch can say for sure that their estimated intrinsic value is accurate.
The second method is by trying to guess stock’s future PE and EPS. This method of predicting future price of a stock is based on a basic formula: (P/E x EPS = Price). According to this formula, if we can accurately predict a stock’s future P/E and EPS, we will know its accurate future price. You can also use these numbers to interpret if the current price of your stock is undervalued or overvalued.
