You are on page 1of 1

Valuation of securities is a post-mortem analysis of the past performance of

a particular security and provides insight into the underlying factors that may
have led to that performance. It is important to understand how and why
these factors have influenced the security, however, it is not a useful tool for
predicting future performance.
This type of analysis is not useful when seeking to make decisions about
future investments because it is based on the past performance and does
not take into account the potential of future changes in the market or the
industry.
Therefore, investors should not rely solely on post-mortem analysis when
making decisions about potential investments; they should also consider
other sources of information, such as analyst reports and news articles, as
well as their own research and analysis.
Additionally, the process of analyzing historical data in order to determine a
security’s value can be time consuming and costly, making it an impractical
approach for many investors. By examining all of these sources, investors
can gain a better understanding of how their investments might perform in
the future.

You might also like