What’s the right price to enter?

A few quick checks, on top of the fundamental analysis, that I’d recommend to do to identify buying opportunities.

1- Compare current multiple with historical averages (say last 10 years). Any big divergence should merit further investigation. If current multiples are way higher than the historical and you can’t attribute that to any structural changes in fundamentals then better leave the stock alone. Likewise lower multiples than historical averages should also be investigated as they can often offer great buying opportunities (e.g. ITC in 2022).
2- Do the same comparison vs peer group. Is the stock valued too low or high compared to the peers? Again there could be a buying opportunity if stock is valued way too lower compared to the peers and you can’t fully explain the divergence based on the fundamentals (e.g.until a year ago some psu bank stocks were trading at less than the book which led to upward price correction).
3- Look at stock price/EPS growth ratio over the years. Ideally the trend should be close to 1 which means stock prices track the earning performance. A ratio lower than 1 should be investigated.
4- For cyclical stocks, look for signs of margins topping and bottoming out as they follow a peak and trough pattern and cyclical stocks correct or rally massively depending on where they are in the pattern.
5- Do the same for earnings for cyclical stocks. Peak earning performances over a few quarters drive down multiples even after massive surge in prices creating giving an illusion of valuation comfort.
6- Look for turnaround stories where sustained topline growth or debt reduction or reversal in market cycle lead to paring of losses bringing a company into profitability.