Tag: decision rule

VN:F [1.6.1_878]please wait…Rating: 5.0/5 (3 votes cast)The idea of Intrinsic Value calculation  seems okay in theory, but implementing it in real life is difficult. One of the most obvious challenges is determining how far into the future we should forecast cash flows. It’s hard enough to predict next year’s profits, so how can we predict [...]

VN:F [1.6.1_878]please wait…Rating: 5.0/5 (1 vote cast)People gain from stock market because  stock market does not fully reflect a stock’s “real” value. After all, why would we all are doing stock market analysis if the stock prices were always correct? In financial jargon, this true value is known as the intrinsic value.
For example, let’s say [...]