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22 March, 18:00

An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimates, the value of Mandalays Inc.'s stock should be $78.54 per share, but Mandalays Inc.'s stock is trading at $99.25 per share on the New York Stock Exchange (NYSE). Considering the analyst's expectations, the stock is currently:

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  1. 22 March, 20:44
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    The stock is overrated because his intrincis value, 78.54 is below his market price 99.25

    This means it is preferable to sale the share before their value drops.

    Explanation:

    Intrinsic Value 78.54

    Market Value 99.25
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