Sharp gains in markets can easily cause valuations to rise as investors follow the enthusiasm. Often without any underlying basis to support them, stock values fly. Many people fall here buying into the buzz without thinking through the actual worth of what they are getting. One constant is that valuation always counts, regardless of the level of the market. In a rising market, avoiding expensive mistakes and guaranteeing long-term success depend on an awareness of this. One of the most important questions long-term investors should ask before purchasing any stock is: “Is this company worth th…