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Answer Posted / mohammed alam
The process of calculating the fair market value of a stock
by using a predetermined formulas that factors in various
economic indicators. Stock valuation can be calculated
using a number of different methods. The most common
methods used are the discounted cash flow method, the P/E
method, and the Gordon model. Whichever method is chosen
must be done accurately so that the price of stock can be
valued properly.
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