..and thus if stock is undervalued or overvalued?
2007-03-25 10:13:32 · 3 answers · asked by Student 2 in Business & Finance ➔ Investing
You can determine with a lot of math the real value of the company, right down to the doorknobs. But, that has little to do the price of their stock. The stock price is based on today's opinion of the mass of stock traders. It is recognized by many as being more phchyolgical than economic.
So, the real question is: is the stock overpriced or underpriced? And the chart will tell you that when you learn to read it. On the Yahoo financial stock charts, see if you can come up with an indicator called RSI. It indicates the relative ration of motivated sellers to motivated buyers. Observe how it moves with the movement of the stock.
Yes, I am trying to convert you into being a "technican" in the market. Jesse Livermore said "the ticker never lies" a long time before Enron, with really good looking books, went down the tubes. The economics looked just fine right up to lights out.
2007-03-25 11:51:31 · answer #1 · answered by ZORCH 6 · 0⤊ 0⤋
just look up the book value.
2007-03-25 14:38:50 · answer #2 · answered by franksprung 3 · 0⤊ 1⤋
its all a guess. i would advise to investigate the company.
2007-03-25 10:21:56 · answer #3 · answered by Anonymous · 0⤊ 2⤋