4 ms·
What if it does both as most assets do? Apple was worth $500B in 2012 and $300B in 2013. Does that mean it was overvalued in 2012? Or was it undervalued in 201
by TekMol 9y ago
What if it does both as most assets do?
Apple was worth $500B in 2012 and $300B in 2013. Does that mean it was overvalued in 2012? Or was it undervalued in 2012 because it is worth $600B in 2014?
- danmaz74 9y agoMost assets do both because most assets, most of the time, aren't really/severely* under- or over-valued. But in general, a moving average can help in determining when they were under/over valued. As a counter-example, an example of "extremely overvalued" in my mind would be Enron before the fall. * https://en.wikipedia.org/wiki/Sorites_paradox https://en.wikipedia.org/wiki/Sorites_paradox EDIT: not so much "determining", but "defining" - you can only know it ex-post...