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Suppose you observe that a share of XYZ is traded at a price of 35 USD on an exchange. Based on your own estimate of the price of a share of XYZ, would you say that the company is overvalued or undervalued by the market (use the price for one share that you found in the previous question to answer this question)?

4. Suppose you observe that a share of XYZ is traded at a price of 35 USD on an exchange. Based on your own estimate of the price of a share of XYZ, would you say that the company is overvalued or undervalued by the market (use the price for one share that you found in the previous question to answer this question)?

 

  • The company is undervalued by the market.
  • The company is overvalued by the market.