Asked by Mashudu Daniel Rambau on Jun 05, 2024
Verified
A stock's intrinsic value is based on assumptions about future cash flows made from technical analysis of the firm and the industry.
Intrinsic Value
The real or true value of a company, stock, currency or product determined through fundamental analysis without reference to its market value.
Technical Analysis
The evaluation of securities by means of studying past market data, primarily price and volume.
- Compare and contrast the methodologies of technical analysis and fundamental analysis in stock valuation.
Verified Answer
AA
Abdul AhteshamJun 11, 2024
Final Answer :
False
Explanation :
A stock's intrinsic value is based on assumptions about future cash flows made from fundamental analysis of the firm and the industry, not technical analysis. Technical analysis is more focused on forecasting price movements based on market trends and patterns.
Learning Objectives
- Compare and contrast the methodologies of technical analysis and fundamental analysis in stock valuation.
Related questions
Scholars Almost Universally Support Technical Analysis Because It Uses Detailed ...
Briefly Outline the Rationale Behind the Efficient Market Hypothesis and ...
Fundamental Analysis Shows That Johnson's Lumber Corporation's Stock Is Overvalued ...
Rights That Allow Stockholders to Maintain Their Proportionate Ownership of ...
The Practice That Gives Minority Stockholders a Chance to Elect ...