can someone paraphrase this please?

Stock Valuation

While it comes to investing, picking the right stock plays a crucial role. Careful research and patience are needed. One needs to check several aspects of the company before investing. There are some essential parameters that have to be analyzed and compared with similar companies before picking a stock.

Stock valuation is an important tool that can help an investor make informed decisions about trading. It is a technique that determines the value of a company's stock by using standard formulas. It values the fair market value of a financial instrument at a particular time. The reason for stock valuation is to predict the future price or potential market prices for the investors to time their sales or purchase of investments. The stock valuation fundamentals aim to value the Intrinsic value of the stock that shows the profitability of the business and its future market value.

The importance of valuing stocks is that the intrinsic value of a stock is not attached to its current price. By knowing a stocks intrinsic value, an investor may determine whether the stock is over- or under-valued at its current market price.

Investors get a large amount of information about a company that can be potentially used in valuing its stocks from the available sources like the companys financial statements, newspapers, economic reports, stock reports, etc. However, an investor needs to be able to filter the relevant information from the wide array of data. Additionally, an investor should know about major stock valuation methods and the scenarios in which such methods are applicable.