问题如下:
The current market price of a stock is $16. An analyst estimates the intrinsic value of a stock should be in the range of $11 to $15. What is the conclusion can be drawn from this analysis:
选项:
A. The stock is overvalued.
B. The stock is fairly valued.
C. The stock is undervalued.
解释:
A is correct.
The upper bound of the analyst’s estimation is lower than the current market price of the stock indicate that the stock is overvalued.
怎么判断是overvaluation? ananlyst的分析价值区间是小于市场价格。难道不是analyst undervalued the stock?