Fundamental analysis shows that stock in Stainless Appliance Company has a present value below its price.
A)This stock is overvalued;you should consider adding it to your portfolio.
B)This stock is overvalued;you shouldn't consider adding it to your portfolio.
C)This stock is undervalued;you should consider adding it to your portfolio.
D)This stock is undervalued;you shouldn't consider adding it to your portfolio.

Question

Quizplus · Accepted Answer

If the present value of the stock is below its price, then it is overvalued, meaning it is not a good buy at the current price. Therefore, option B is the correct answer, as it advises against adding the stock to the portfolio.

Fundamental Analysis Shows That Stock in Stainless Appliance Company Has