When trying to figure out which valuation method to use to value a stock for the first time, most investors will quickly discover the overwhelming number of valuation techniques available to them today. There are the simple-to-use ones, such as the comparables method, and there are the more involved methods, such as the discounted cash flow model. Which one should you use?

Unfortunately, there is no one method that is best suited for every situation. Each stock is different, and each industry sector has unique properties that may require varying valuation approaches. Here, we'll provide an overview of the two basic categories of stock - common and preferred - and then discuss how to value each.

Common Stock Features

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