3. Intrinsic values and stock prices The intrinsic value of a company's stock also knovm as its fundamental velue tefer to the stocks true walue based on excected future Elish flows and the raks involved. The value perceived by stock market investar desartining the morket prime of a atock A stocic trading at a pree below its intrinsic value is considered to be undervalued. A steck crading at a price abeve its intrinsis value is considered to be overvalued. In a state of market equilibrium, the intrinsic value of the stock will be Hie market price of the istock. An analyst wikh a leading investment bank tracks the stock of Macdalays loc. According to taf extmations, the value of stondalays Inch stock ahould expectationt, the stock is currentivt in equilibriart Undervalued Overvalued