Asked by Mashudu Daniel Rambau on Jun 05, 2024

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A stock's intrinsic value is based on assumptions about future cash flows made from technical analysis of the firm and the industry.

Intrinsic Value

The real or true value of a company, stock, currency or product determined through fundamental analysis without reference to its market value.

Technical Analysis

The evaluation of securities by means of studying past market data, primarily price and volume.

  • Compare and contrast the methodologies of technical analysis and fundamental analysis in stock valuation.
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Abdul AhteshamJun 11, 2024
Final Answer :
False
Explanation :
A stock's intrinsic value is based on assumptions about future cash flows made from fundamental analysis of the firm and the industry, not technical analysis. Technical analysis is more focused on forecasting price movements based on market trends and patterns.