Which technique is used in fundamental analysis in determining a stock's value?

Question

Quizplus · Accepted Answer

Fundamental analysis involves looking at a company's financial data and using that data to determine the intrinsic value of a stock. The dividend discount model is a common technique used in fundamental analysis, which involves estimating a stock's future cash flows and then discounting them back to the present to determine the stock's current value. This method helps investors assess whether a stock is undervalued or overvalued, based on its current market price. Technical analysis (A) and price trend analysis (C) rely on studying charts and historical price data to determine future price movements, while charting (D) involves creating charts to help identify patterns and trends in stock prices. While these methods may be useful in certain situations, they are not typically used in fundamental analysis.

Which Technique Is Used in Fundamental Analysis in Determining a Stock's