Intrinsic value and overbought zone : Tickertape

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Intrinsic value and overbought zone

Dharmesh T

started a topic 29 days ago

I am confusing seeing on ticker tape in many stock detail that intrinsic value is showing red and overbought zone is green. How can it possible. If stock's price is more than intrinsic value it should be automatically in overbought zone. So, both should be red. Pls give suggestion

1 Comment

Parvez Ali

said 26 days ago

Hi Dharmesh,

Instrinsic value is more of a fundamental metric that values a stock based on its financials and some other factors. Whereas overbought/ oversold zone is based on 14D RSI (i.e. signalling short term trend). Hence a stock can be overbought in the short term but still can be undervalued compared to it's intrinsic value in the long term.

Hope this answers your question.

Please write to us at support@tickertape.in if you need help with anything else.

Regards