How to check if a stock is overvalued or undervalued
Fair value is roughly what a rational investor might pay today for the company's future cash flows, adjusted for risk. When the share price sits well above that zone, the market is often pricing in perfection - that's when people say a stock looks overvalued. When price sits materially below fair value (with no big red flags), it may look undervalued.
Intrinsic value is your estimate of that fair value from the business itself - using forecasts or simple rules of thumb - not whatever the crowd is paying today. Valuation is rarely one number; it's a range that moves as earnings and rates change.
A quick sanity check many investors use: compare price to a fundamental anchor, e.g. P/E = Price per share ÷ Earnings per share, then ask if that multiple makes sense for this company's growth and risk versus peers and its own history.
Browse all calculators including intrinsic value and ratio helpers.