This weeks readings address valuing stocks, although the concepts of valuation apply to many aspects of the firm. Explain the differences between market price per share, and intrinsic value (a fundamental price), and factors that determine the fundamental price of a stock.

Then, select a publicly traded company in Saudi Arabia, calculate its fundamental price per share, compare the fundamental price per share with market price per share and decide if it is underpriced, overpriced, or fairly price. (Make sure your selected company is different than your classmates). Explain why these concepts are important to business leaders in Saudi Arabia and Saudi Vision 2030.