Financial management basics

Financial management basics

Financial management basics are tests of fundamental concepts. Every investor who wants to outperform the market must learn the art of stock valuation. Stock valuation is essentially a method of determining a stock's intrinsic (or theoretical) value. The significance of stock valuation stems from the fact that a stock's intrinsic value is not linked to its current price. An investor can determine whether a stock is over-or under-valued at its current market price by knowing its intrinsic value.