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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?

 

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.

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Question ajoutée par Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date de publication: 2015/03/24
Wasi Rahman Sheikh
par Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Correct answer is The market is undervaluing the stock.

Tegegne Abrham
par Tegegne Abrham , General Manager , MM BEDDING INDUSTRIES PLC

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
par Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Correct Ans is.

 

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

Utilisateur supprimé
par Utilisateur supprimé

The market is undervaluing the stock.

Alex Al Yazouri
par Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

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

Taiwo Atanda
par Taiwo Atanda , Finance Business Partner , Honeywell Flour Mills Plc

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

Abd El Rahman Mamdouh
par Abd El Rahman Mamdouh , Study and Proposal (Presales) Manager - ICT solutions , BTC : Baud Telecom Company

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

 

Mir Mujtaba Ali
par Mir Mujtaba Ali , Internal Audit Manager , Confidential

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

Mohammed Shahid Ullah
par Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

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

Emad Mohammed said abdalla
par Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

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

Hemant Uttwani
par Hemant Uttwani , Viny Packaging Pvt, Ltd

THE MARKET IS UNDERVALUING THE STOCK