Overview
Stock valuation is the process of determining the theoretical worth of a company's stock, aiming to predict future market prices and exploit discrepancies between perceived value and actual trading prices. However, the inherent subjectivity and reliance on future predictions mean that valuation is as much an art as a science, with consensus often diverging wildly from actual market movements. The ultimate goal is to identify opportunities for profit by betting on the market eventually aligning with a calculated theoretical price, a pursuit that has captivated investors from [[john-pierpont-morgan|J.P. Morgan]] to modern-day hedge fund titans like [[ray-dalio|Ray Dalio]].