If the intrinsic value of a stock is greater than its market value, which of the following is a reasonable conclusion?

Question

The stock has a low level of risk.

The stock offers a high dividend payout ratio.

The market is undervaluing the stock.

The market is overvaluing the stock.

Wasi Rahman Sheikh · Answer

Correct answer is The market is undervaluing the stock.

Tegegne Abrham · Answer

The answer is D but why? The intrinsic value of a share is measured by discounting future cash flow of the of the company from its operation.  This may not be reflected in the investors measurements of EPS  or P/E ratio used to valuation of shares. In this case the intrinsic value of shares will become higher  than the market value

Muhammad Ramzan Tufail ACCA · Answer

Correct Ans is.

The market is undervaluing the stock.>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

مستخدم محذوف‎ · Answer

The market is undervaluing the stock.

Alex Al Yazouri · Answer

>>>>>>>>>>>>>The market is undervaluing the stock.

Taiwo Atanda · Answer

The market is undervaluing the stock...................................................................................................

Abd El Rahman Mamdouh · Answer

the right answer :The market is under-valuing its stock value

Mir Mujtaba Ali · Answer

The market is undervaluing the stock.>>>>>>>>>>><<<<<<<<<<<

Mohammed Shahid Ullah · Answer

The intrinsic value of a stock is greater then its market value, that means market is undervaluing the stock.

Emad Mohammed said abdalla · Answer

>>>>>>>>>>> The market is undervaluing the stock.

Hemant Uttwani · Answer

THE MARKET IS UNDERVALUING THE STOCK

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If the intrinsic value of a stock is greater than its market value, which of the following is a reasonable conclusion?

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