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In this episode of Stocks In Translation, Yahoo Finance's Markets and Data Editor Jared Blikre and Yahoo Finance Producer Sydnee Fried sit down with Wave chief financial officer Michaella Gallina to discuss value stocks, taxes, fiscal and monetary stimulus, and her career journey.

When approaching value stocks, Gallina says, "I look at a company's price-to-earnings ratio... over the last decade… If you map that over, call it a decade or maybe five or six years, you know, depends on the company and what they're going through and... their current life cycle. But I like to look at that chart. And then you can kind of create bands based on its trading range... And you can put a median trading multiple on that stock. And anything beneath that, I'm going to be keeping a very close eye on... You can watch them trade and when they're undervalued and they're these compounders... if you believe in that story over time, it's going to get back to where it should be and higher."

Gallina breaks down what to look for when selecting a value stock. "Strong, consistent earnings and cash flow over time... that's predictable and stable. That's a big thing for me."

Gallina notes the importance of diversification in your portfolio. "You have to have diversification unless you're value fund... I just think people have focused even more so on growth and they've forgotten the value stocks, which in some cases have significantly outperformed the growth stocks. Especially when you've got risk in."

On stimulus, Gallina explains, "I think one of the other problems is that the consumer, and I think frankly businesses in today's age with what we've seen since the... global financial crisis in 2008, is that the government is going to step in in some form. So if things start to go haywire... I think consensus is they're going to step in and do something else to try to smooth it out. And I think that's a really dangerous road to go down because at some point they're not going to be able to correct things at the magnitude that they've been putting... stimulus into the marketplace. They're not going to be able to move as fast to correct that whether... they decide to do something or not. And I think their hand is being forced in today's economy to step in and do something."

Some advice Gallina gives to early investors is "pick low-fee mutual funds... mutual funds or ETFs... Earlier in your career, the more aggressive you can be. So pick further out retirement funds, for example, and stay diversified. Now as a young investor, you can take a lot more risks. So you're able to have... greater diversification and riskier, trickier assets. But I would say the biggest piece of advice is start investing early, any amount of money... The compounding interest is... most important at that age."

Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes on our video hub or watch on your preferred streaming service.

This post was written by Mariela Rosales.