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Stock Valuation

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Explain why valuation might be described as a "fickle" process to a stockholder. What factors tend to make the process fickle, and what factors tend to make it more predictable?

© BrainMass Inc. brainmass.com September 20, 2018, 4:15 pm ad1c9bdddf - https://brainmass.com/business/real-options-valuation/stock-valuation-179517

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Stock valuation is an attempt to determine the fair market value of stocks using forecasted data like future dividends, future growth rates, etc.

FACTORS

It is impossible to predict fair market vakue of a stock and state with authority that the value you find is going to be acurate at the future date. For example, if I estimate that the FMV of a stock is $23.13 for next month, there is no ...

$2.19