So what are you actually supposed to do with a stock’s intrinsic value? 🤔
Well, you can compare it to a stock’s market price to see if the stock is OVERvalued or UNDERvalued ⚖️
If a stock’s intrinsic value is greater than its market value, then the stock is UNDERvalued 🤑
An overvalued stock may be less likely to grow, and its price may DECREASE to its intrinsic value 🤔
Oftentimes, a stock become overvalued when a lot of people invest in it based on hype or market trends, which can drive its price up
If a stock’s intrinsic value is less than its market value, then the stock is OVERvalued 🤔
Undervalued stocks may reach their intrinsic value and therefore can have good investment potential 📈
But, stocks can become undervalued when investors lose hope in the company and sell the stock. . .
This may drive their stock prices down 😫
On Bloom, you can find our calculation of a stock’s intrinsic value right on its stock page, right under its “Risk Rating”
Here, try finding it for Google
Keep in mind that our calculation is only an estimate!
So, there is no objective number, only good estimates 😉