The greatest value to an analyst from calculating a stock's intrinsic value is ________.

Question

Quizplus · Accepted Answer

The greatest value to an analyst from calculating a stock's intrinsic value is how the process forces analysts to understand the critical variables that have the greatest impact on value. This helps the analyst gain a deeper understanding of the company and its operations. Accuracy and precision of the value estimate are important, but understanding the critical variables is the most valuable aspect of the process. The fact that different models yield identical value results is also not necessarily a good thing, as it may indicate a lack of diversity in the analysis.

The Greatest Value to an Analyst from Calculating a Stock's