Why Price Isn't Value

What this unit covers

Separate a stock's price, what the market says right now, from its value, what the business is actually worth.

By the end you will be able to

• Explain the difference between a stock's price and its value.
• Recognise when a price move comes from crowd emotion, not real change.
• Practice pausing before reacting to a sudden price jump or crash.

How it starts: Why Price Isn't Value

1. A share you own trades at 400 rupees this morning.
2. A rumour spreads and the price jumps to 460 rupees by noon.
3. Has the business become worth more, or has only the mood changed?

Words you will meet

Market sentiment

The shared mood of buyers and sellers, excited or fearful, that can push price away from value.

In this module: Valuation Without Fear

1. Why Price Isn't Value (this unit)
2. Intrinsic Value Simplified
3. Margin of Safety
4. When to Buy & When to Wait