Fairly valued - Definition

When a security (be it stocks, bonds, options or any other) is priced in such a way that its future cash flow streams justify it current value, it is said to be fairly valued. Not every investor uses cash flow as their benchmark, some investors use a multiple such as a stock's price to Earnings ratio or PE Ratio, price to sales ratio to determine if a stock is fairly valued .

Terms near "Fairly valued"

Fast Market
Federal Deposit Insurance Corporation (FDIC)
Federal Funds Rate (FFR)
Federal Open Market Committee (FOMC)
Federal Reserve Bank (Fed)
Federal Reserve Board
Fiat Currency
Fibonacci Numbers
Fill or Kill
Ready to Trade!
First you'll need an online broker. See how much you can save by visiting Forexbite Broker Center.

Fairly valued - Related articles & news

Top 5 factors that affect exchange rates ...

There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...

Forex Navigation