INTRINSIC VALUE IN ASSESSING THE FAIRNESS OF IT STOCK PRICE USING FUNDAMENTAL ANALYSIS

Abstract

Investors invest money in present with the expectation of making addition to the principal amount in the future. Each investor is willing to know the best instrument for investment and suitable time for that. Stock is one of the financial instruments used for making handsome return. Knowing the real value of the stock plays a vital role for gaining return, which is not an easy for the investors to compute real worth of company. Different techniques like Fundamental analysis and Technical analysis are used for deriving real value of the stock. This research focus on to assist the investor to know about the stock's worth value for investment. This research paper aims to arrive at the intrinsic value of shares for selected eight IT companies of India. It will help investors to know the intrinsic value and compare it with the market value to make decision related to buy or sell of those stocks.