Question

The book value of closing stock is ₹55000 which is overvalued by 20% ????​

Answer 1

Answer:

A stock is considered overvalued when its current price isn't supported by its P/E ratio result or earnings projection. The P/E ratio is also known as an earnings multiple. If a company's stock price is 50 times earnings, for example, it's likely overvalued compared to a company that's trading for 10 times earnings.