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  3. 5. intrinsic values and stock prices the intrinsic

5. Intrinsic values and stock prices The intrinsic value of a company's stock , also...

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Finance

5. Intrinsic values and stock prices The intrinsic value of a company's stock , also known as its fundamental value , refers to the stock's true value based on accurate risk and return data. The value perceived by stock market investors determines the market price of a stock A stock trading at a price below its intrinsic value is considered to be undervalued A stock trading at a price above its intrinsic value is considered to overvalued. The goal of the managers of a publicly owned company should be to maximize the firm's An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalays Inc.'s stock should be $69.54 per share, but Mandalays Inc.'s stock is trading at $55.78 per share on the New York Stock Exchange (NYSE)Considering the analyst's expectations, the stock is currently equilibrium undervalued overvalued

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