Price and Value Are Not the Same
Don’t confuse price and value when investing in the stock market. A stock’s price in daily trading can be pushed and pulled by many influences. However, the value of the business is not changed by fluctuations in the stock’s price. The value you determine in your analysis establishes the fair market value of the stock, at least as far as you are concerned. This fair market value is also called its intrinsic value, which means it reflects the value of the business to investors.