Still trading near a 14-year high, how close to ‘fair value’ is Tesco’s share price?
Tesco’s (LSE: TSCO) share price has risen 34% from its 10 April one-year traded low of £3.10. This leaves it just 4% off its 24 July 12-month high of £4.31. And the last time that level was seen was January 2011.
This does not necessarily mean no value remains in the stock. After all, price and value are not the same thing. Price is whatever the market will pay for a stock at any given time. Value is the true worth of the share, derived from the underlying business’s fundamentals.
Understanding this difference and being able to quantify it is crucial for generating significant profits over time, in my experience.
I believe a good starting point in assessing a stock’s price…
