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B. Stock valuation in essence is a process to determine the intrinsic value of a stock. Its importance evolves from the fact that the intrinsic
B. Stock valuation in essence is a process to determine the intrinsic value of a stock. Its importance evolves from the fact that "the intrinsic value of a stock is not attached to its current price. (Stock Valuation - Overview. Types, and Popular Methods (corporatefinanceinstitute.com) John, an undergraduate student of business studies program was appointed as an intern at JC Bhd. His role is to assist in investment activity of the firm. John believes that a stock's intrinsic value can be used to determine whether a stock is under or over valued by merely comparing its market price to its intrinsic value. Thus, it can assist him to make decision with regards to investment in stocks. John is eager to know the other uses of stock valuation, and approached you, the financial manager of the company for help. Explain to John any other two (2) uses of stock valuation that he needs to know. (4 marks)
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