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To be simple is the best thing in the world; to be modest is the next best thing. I am not sure about being quiet.- G.K. Chesterton
Do not condemn the judgment of another because it differs from your own. You may both be wrong.- Dandemis
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.- Bertrand Russell
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The key to doing the analysis is usually making sure that an investor is comparing an apple to another apple, and he/she has not mistaken a pear for an apple.
I normally use the basic P/E, P/B and then crunching the numbers and business/industry trend. It is normally the last part which takes us the most time as one has to do an extensive amount of reading to have a basic (yes, only basic) understanding of the industry. And it's also this which I believe is the key to identifying undervaluation and its catalyst(s) to revalue.
Ultimately, at the end of the day, you want a matrix of different analysis perspective and not just a simple buy call because the stock is selling at 3x P/E, period.
Even for P/E or P/B, each is not considered as The multiple and both have to be used and analysed in order to have a better understanding of the valuation.