5. Intrinsic values and stock prices The intrinsic value of a company's stock, also known as its fundamental value, refers to the stock's "true" value based on accurate risk and return data. The value perceived by stock market investors determines the market price of a stock; A stock trading at a price below its intrinaic value is considered to be undervalued. A stock trading at a price above its intrinsic value is considered to be overvalued. In a state of market equil brium, the intrinsic value of the stock will be the market price of the stock. An analyst with a leading investment bank tracks the stock of Mandala I to hefrestimatons, the value of Mandalays incis stock should be $33.58 per share, but Mandalays Incis stock is trading at $37.32p iew York Stock Exchange (TVSE). Considering the analyst's expectations, the stock is currently: overvalued undervalued in equilibrium The intrinsic value of a company's stock, also known as its fundamental value, refers to the stock's "true" value based on accurate risk and return data. The value percelved by stock market investors determines the market price of a stock. A stock trading at a price below its intrinsic value is considered to be undervalued. A stock trading at a price above its intrinsic volue is considered to be overvalued. In a state of market equibrium, the intrinsic value of the stock will be the market price of the stock. An analyst with a leading investment bank tracks the stock of Mandalays Inc, According to her estimations, the value of Mandalays Inci's stock should be $33.58 per share, but Mandalays Inci's stock is trading at $37.32 per share on the New York Stock Exchange (NYSE). Considering the analyst's expectations, the stock is currently: overvalued undervalued in equilibrium The following graph shows a stock's actual markott price and intrinsic value over time. The intrinsic value comes from another research analyst. Use the dropdown menus to label the periods in wheh the stock was undervalued or overvalued