Different between intrinsic value and overbought zone
started a topic
14 days ago
Different between intrinsic value and overbought zone , please explain
13 days ago
Thanks for reaching out to us.
Intrinsic value refers to the investors’ perception of the actual value of the company. It is basically a measure of what an asset is worth. Intrinsic value can provide you with a deeper, more informed understanding of an investment’s value. It shows you the asset’s value based on an analysis of its actual financial performance.
There are different methods of calculating intrinsic value, taking into consideration earnings per share, cash flow, or dividends per share are available. This is the reason why Tickertape does not show Intrinsic value as such, we display a percentile ranking of the scrip in comparison with other scrips.
In simple words, overbought means that there has been a lot of buying in the stock, and thus, now stock is expensive. In order to know if a stock is expensive(overbought) there are filters like RSI on tickertape. Using this filter, you can find the overbought stocks and trade accordingly.
The difference is clear by their definitions in this case, Sunil.