Fundamental analysis shows that Johnson's Lumber Corporation's stock is overvalued.
A)This means its present value is less than its price; you should consider adding it to your portfolio.
B)This means its present value is more than its price; you shouldn't consider adding it to your portfolio.
C)This means its present value is less than its price; you shouldn't consider adding it to your portfolio.
D)This means its present value is more than its price; you should consider adding it to your portfolio.

Question

Quizplus · Accepted Answer

When a stock is overvalued, it means its market price is higher than its fundamental value, suggesting it may not be a good addition to your portfolio due to the potential for a price correction.

Fundamental Analysis Shows That Johnson's Lumber Corporation's Stock Is Overvalued