While some investors try to benefit from the bear market, long-term investors and value investors see the market go down as an opportunity to buy shares at a significant discount. (For more, see: Benefits at Bear and Bull Markets.
Just because the stock goes down does not mean that it will rise again later, but if the company's fundamentals do not change, the lower the stock price can be a signal for cheap purchases.
Shares often go up and down together. In some situations, that makes sense. However, if one company performs very well and stock prices decline only because other similar companies have performed poorly, it is necessary to carry out in-depth analysis and decide whether the stock is undervalued.
The general metric for valuing a stock is the capital asset pricing model, multiple analysis and discount free cash flow analysis. This tool helps you find the intrinsic value of a stock and helps you decide if it's the right time to buy.
If the market is performing poorly, multiple analysis is the preferred method for determining whether shares are undervalued or overvalued compared to the industry. (For more information, see: Investment Analysis: Assessing Shares with Multiple Analysis.
Will Lipovsky's personal finance financing from First Quarter Finance agreed. He said that "the market is down is the best time to buy."