It is more difficult to value a stock than it is to value a bond because:

Question

Quizplus · Accepted Answer

Valuing a stock is more challenging than valuing a bond primarily because stocks do not have a maturity date. Bonds have a finite life, with cash flows and a maturity value that can be determined at the time of investment, making their valuation more straightforward. Stocks, on the other hand, represent ownership in a company with potentially infinite life, and their future cash flows (dividends) and final payout are uncertain, complicating their valuation.

It Is More Difficult to Value a Stock Than It