Understanding value stocks and what to watch for

Stocks in Translation

In this episode of Stocks In Translation, Yahoo Finance's Markets and Data Editor Jared Blikre and Yahoo Finance Producer Sydnee Fried sit down with Wave chief financial officer Michaella Gallina to discuss value stocks, taxes, fiscal and monetary stimulus, and her career journey.

When approaching value stocks, Gallina says, "I look at a company's price-to-earnings ratio... over the last decade… If you map that over, call it a decade or maybe five or six years, you know, depends on the company and what they're going through and... their current life cycle. But I like to look at that chart. And then you can kind of create bands based on its trading range... And you can put a median trading multiple on that stock. And anything beneath that, I'm going to be keeping a very close eye on... You can watch them trade and when they're undervalued and they're these compounders... if you believe in that story over time, it's going to get back to where it should be and higher."

Yahoo Finance's Stocks in Translation, with master statistician Jared Blikre and voice of the people Sydnee Fried, is your guide with essential conversation cutting through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio.

Find this episode's transcripts and more episodes of Stocks in Translation at https://finance.yahoo.com/videos/series/stocks-in-translation/

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Yahoo Finance's Stocks in Translation is hosted by Jared Blikre and Sydnee Fried, and produced by John Tejada.

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