QUOTE(bryan5073 @ Mar 21 2012, 03:29 PM)
I know there is no precise figure for a fair value of a stock, what I meant was:
- How reliable are the Research Reports by the Investment Banks?
- How much can we trust the Fair Value they give? (Which will in turn indicate how much effort they put in to calculate the FV)
- Can we do a better work calculating the Fair Value?
- All in all, it's a matter of how much can we rely on their reports?, that's all.
What do you guys think?
Fair valuation given can change instantly overnight.
Today report gives fair value Rm5.00.
Next day revise to Rm3.00
Today have buy call
Tomorrow can have hold/sell call.
Reliable?
It is based on opinion respective.
So tell me, what is the reliability of opinion?
Why do you want to calculate fair value?
A stock should be evaluated whether it is not worth to invest or not Now only.
Who care what is the fair value, you care about as today market is worth or not to buy only, or to sell as well.
Report can give A stock fair value at RM5.00, the market price also can never achieve Rm5.00 for 10 years.
Or exceed the Rm5.00 forever without looking back .
So tell me what is the point of fair value?
This post has been edited by cherroy: Mar 21 2012, 04:06 PM