Fair Value Per Share Definition & Application Wiki
Fair Value Per Share Definition & Application Wiki
Last Updated by WikiWealth
Short Definition:
WikiWealth does not compute a 12 month price target, because a time frame is a meaningless indicator of value and creates the illusion of superior predictive ability. We compute a fair value of a rational and conservative price for the company.
Fair Value Per Share is the fair value of the company divided by the shares outstanding. The fair value is computed using WikiWealth's analysis of the financial conditions and projected results of the target company. Wikiwealth uses conservatives projections of future results. A fair value below the current market price indicates that the public company's share price is overvalued; the opposite indicates that the value is undervalued.
See Dictionary Terms
- Weight Average Cost of Capital (WACC)
- Value Investing
- Terminal Value
- Shares Outstanding
- Risk Free Rate
- Present Value Factor
- Long Term Growth Rate
- Fair Value Per Share
- Free Cash Flow
- Free Cash Flow to the Equity (FCFE)
- Free Cash Flow to the Firm (FCFF)
