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If Wal-Mart Stores Inc. has a market price of $50 and based on the constant growth model, the fundamental price is determined to be $72.
If Wal-Mart Stores Inc. has a market price of $50 and based on the constant growth model, the fundamental price is determined to be $72. This means that Wal-Mart Stores Inc. is a A. buy, as there is an adequate margin of safety B. sell, as investors should not care about fundamental prices. C. marginal buy, as there is marginal profit making opportunity. D. marginal sell, as there hardly any upside to buying the stock.
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