Is Your Stock Over-Valued? Find Out Here

Question: 

A stock whose current share price is mIs Your Stock Over-Valued? Find Out Hereore than its intrinsic value is:

A) Over-valued or expensive.

B) Neither cheap nor expensive.

C) Over-valued or cheap.

D) Under-valued or cheap.

E) Under-valued or expensive.

Answer Description:

When evaluating the value of a stock, the intrinsic value is considered the true or fair value of the stock based on fundamental analysis. If the current share price of a stock is higher than its intrinsic value, this typically indicates that the stock is priced above what it is fundamentally worth.

In this context:

Over-valued or Expensive: If the current share price exceeds the intrinsic value, the stock is considered over-valued or expensive. Investors would be paying more for the stock than its calculated worth based on fundamental factors.