The Dependence between Stock Price and Intrinsic Value of a Stock

Abstract

This research explores the relationship between the market price of a stock and its intrinsic value. While stock prices fluctuate frequently due to market sentiments, macroeconomic conditions, and speculative behaviors, intrinsic value reflects the true worth of a company based on its fundamentals. Using empirical analysis and theoretical frameworks, this paper investigates the extent to which stock prices align with or deviate from intrinsic values, focusing on the implications for investors, analysts, and policymakers.