Fundamental analysis shows that stock in Lodgefire Restaurants has a present value below its price.
A)This stock is overvalued; you should consider adding it to your portfolio.
B)This stock is overvalued; you shouldn't consider adding it to your portfolio.
C)This stock is undervalued; you should consider adding it to your portfolio.
D)This stock is undervalued; you shouldn't consider adding it to your portfolio.

Question

Quizplus · Accepted Answer

If a stock's present value is below its current market price, it is considered overvalued. Therefore, choice B says that the stock is overvalued and investors should not consider adding it to their portfolios.

Fundamental Analysis Shows That Stock in Lodgefire Restaurants Has a Present