Fair Price and Stock Valuation Techniques Essay Example | Topics and Well Written Essays - 250 words

Fair Price and Stock Valuation Techniques - Essay ExampleIf the estimation in a higher place were accurate, the share would be said to be undervalued by the grocery.The Gordons growth model has several weaknesses that whitethorn make the estimates not to be perfectly accurate. The model utilize above utilized a thin over 5 years to calculate wampum growth this does not give a nice estimate. The data applied in the estimation stocks value is historical (up to December 2011), the market changes from that time may have affected the share prices. The model also assumes constantly growing earnings per share this assumption is not realistic and may over value a stock. The information used by the market in valuing the stock includes past, present and future information, whereas the model only utilizes past data. (Stoltz, 2007).stock-analysis-on.net. GlaxoSmithKline PLC (GSK) beat Value of Free Cash Flow to the Firm (FCFF) Online (Updated 2012) Available at http//www.stock-analysis o n.net/NYSE/Company/GlaxoSmithKline-PLC/DCF/Present-Value-of-FCFF Accessed On 6 November 2012Londonstockexchange.com. gsk glaxosmithkline plc Online (Updated 2012) Available at http//www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary.html?fourWayKey=GB0009252882GBGBXSET0 Accessed On 6 November