A company's fundamental value may be derived

Question

Quizplus · Accepted Answer

A company's fundamental value can be determined by analyzing its earnings and projecting future earnings. This is typically done through a price-to-earnings analysis, which looks at the company's stock price in relation to its earnings per share. Other methods, such as reference to the Blue Book of Fundamental Values or construction of charts, may be useful as supplements to this analysis, but they are not the primary means of determining a company's fundamental value. Interviews with management may provide additional insights into a company's operations, but they are not likely to be the sole basis for determining its fundamental value.

A Company's Fundamental Value May Be Derived