Question
In the discussion board this week let's discuss reasons why the intrinsic value of a stock as we learned how to calculate it; dividend discount
In the discussion board this week let's discuss reasons why the intrinsic value of a stock as we learned how to calculate it; dividend discount model, corporate valuation (DCF), and valuation by multiples might be different than the actual stock price in the market. Also, let's discuss a little bit about real live stocks that trade in the market.
1. Offer some reasons that the intrinsic value that you might calculate with the methodologies learned might yield a price different than what the stock trades at in the stock market. You can reference any method of valuation models in offering thoughts on why there might be differences between intrinsic and market values.
2. Go to Yahoo! Finance or another source and pick a stock to track for the last year. Discuss the performance of the stock over the last year and offer your thoughts being specific about why the stock has done well or not
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