I see research companies saying ABC stock ko intrinsic value XXX ho bhanera, tara market ma eti price chha tei bhaera its overvalued or undervalued. How do they calculate that?
View on r/NepalStock by dasman-
It depends on the sectors. For example, infra sectors will depend on order book(which will rate high if more tenders won). Banking sectors on book value or NIIs. For naive person you can find industry average PE and multiply with EPS
i guess fundamental analysis, macroeconomic factor, past data, financial reports, balance sheets, cash flow, debts, business outlook/expansion etc. there could be different models for different perspective to arrive at intrinsic value. it is all easier said than done, however
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