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How can one calculate whether a company is undervalued or Overvalued in the stock market?

This can be calculated through Q ratio and dividend discount model. The divident discount model is not appropriate for the companies who are issuing any dividend. So the Q ratio is

Value of the stock= total market value of the stock/ total value of assets

If the value is from 0 to 1 then the stock is undervalued but if the value is above 1 then the stock is overvalued.

Ahsan Jamil

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