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The fair value of a stock is the discounted net present value of future profits of an enterprise, plus assets, minus liabilities. There are a lot of companies
by MrPowers 6y ago
The fair value of a stock is the discounted net present value of future profits of an enterprise, plus assets, minus liabilities. There are a lot of companies that continue to make a lot of money and the market is confident in the long term prospects for corporate profits. Corporate profits are increasingly detached from the overall economy.