1.

Low valuation means that the stock price is undervalued because it is lower than the overall market price-earnings ratio or industry price-earnings ratio. It should be higher than the existing share price, so you can rest assured if you buy it. Such stocks are usually the first choice for long-term investment.

2.

Low valuation stocks have low P/E ratio and low P/B ratio. My selection criteria are that the P/E ratio is less than 30 times and the P/B ratio is less than 3 times. Then, whether the company's main business is a promising industry, whether the company's gross profit margin is relatively high in the same industry, whether the company's performance can grow, whether new projects will be put into production in the next few years, and whether it will bring great growth to the company's performance. Companies that meet the above conditions are basically undervalued stocks.