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🔥 How to Identify Undervalued Stocks in 2025 (A Complete Guide) Finding **undervalued stocks** is one of the best ways to generate high returns with lower risk. But how do you spot these hidden gems before the market catches on? In this guide, we’ll walk you through the key **valuation metrics, industry trends, and real-world examples** to help you make better investment decisions. Image Credit: Pexels 📊 1. Understanding Stock Valuation Metrics Investors use different **valuation ratios** to determine whether a stock is undervalued. Here are the most important ones: 📉 **Price-to-Earnings Ratio (P/E)** → Lower P/E suggests a stock might be undervalued. 💰 **Price-to-Book Ratio (P/B)** → P/B below 1.5 often signals a bargain. 📈 **Price-to-Sales Ratio (P/S)** → Useful for evaluating growth companies. ⚡ **EV/EBITDA** → Helps compare companies with different debt levels. Image Credit: Pexels 🔍 2. Look for Stocks with Strong Fundamentals Fundamen...