Investing Basics – Feel free to ask the most basic questions

I am not expert. But my thoughts are that we can’t be perfectly correct in valuation. but we can try to be approximately right. Now coming to valuations, there are different methods. Some people use DCF, some bull/bases/bear scenario depending on growth expectation. I personally found DCF hard and again subjected to error since we are the one putting growth expectation. One simple method could be look at historical PE(5 or 10 yrs) and buy around that price. In case you see growth improving drastically in last 1-2 years and think this is sustainable growth, you can pay little higher than the historical PE. I think this approach work for investor like me who want to keep it simple. Just my thought