A newly-listed Internet startup on the Hong Kong Stock Exchange has 1 million shares outstanding and its stock price is $2 per share. In other words, its market value is US$2 million. Suppose the startup will have $0.1 million of cash inflows each year. Discounting the cash flows by 10%, its intrinsic value is $1 million. How do you expect its stock price to perform in the future?

A newly-listed Internet startup on the Hong Kong Stock Exchange has 1 million shares outstanding and its stock price is $2 per share. In other words, its market value is US\$2 million. Suppose the startup will have $0.1 million of cash inflows each year. Discounting the cash flows by 10%, its intrinsic value is $1 million. How do you expect its stock price to perform in the future