If the intrinsic value of stock is less than the current stock price, the stock is overvalued and should be sold or shorted.

Question

Quizplus · Accepted Answer

If the intrinsic value of a stock (what the stock is really worth based on fundamental analysis) is less than its current market price, it suggests that the stock is overvalued by the market. Investors might consider selling or shorting the stock as it is expected to decrease in value to match its intrinsic value.

If the Intrinsic Value of Stock Is Less Than the Current