ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    ┬а A stock is selling at Rs 50. An analystтАЩs

    valuation model estimates its intrinsic value to be Rs 45. Based on her estimate, a stock is:
    A underpriced Correct Answer Incorrect Answer
    B overpriced Correct Answer Incorrect Answer
    C fairly priced Correct Answer Incorrect Answer
    D cannot say Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    ┬а If the calculation of intrinsic value by an analyst shows that it is lesser than market value then it is overpriced. Intrinsic value is calculated as per the fundamentals of a company, if it shows a lesser value and share is trading at a higher value then it is overpriced.

    Practice Next
    More Financial Management Questions
    ask-question