Bank stock jumps 5% after Tikri Partners bought 2.2% stake in the company via bulk deal
In the stock market, timing isn’t just important - it can be everything. Whether you’re an investor looking to grow wealth or a trader trying to avoid losses, knowing when a stock is overvalued or undervalued can drastically change your outcomes. And that’s where the fair value feature can quietly become your most valuable investing tool.
Fair value, in simple terms, tells you what a stock is actually worth based on its fundamentals. Traditionally, figuring this out meant going deep into balance sheets, running complicated models, and still possibly missing key variables. But now, with smart automation, tools like InvestingPro’s fair value engine do the heavy lifting - accurately and precisely.
Take this real-world example.
On 14 August 2024, Oil India Limited (NSE:OILI) was trading at around INR 658 per share. The momentum looked tempting. But a quick check of the fair value at the time would have raised a red flag: the stock was worth only INR 472 based on its financials. That’s a concerning 28.2% downside potential - a clear sign that the stock was overheated.
Image Source: Investing.com
By 28 October 2024, that warning played out. The stock slumped to hit its fair value, delivering a sharp correction that cost late investors dearly. Those who had used the fair value feature to exit early - or better, take a short position - could have avoided losses or even profited from the drop.
This is the silent power of fair value. It doesn’t scream for attention, but it saves or makes you money when it matters the most. It gives you objective clarity, helping cut through hype and emotion, and keeps you grounded in the stock’s actual worth.
With InvestingPro, investors get access to this feature across thousands of stocks, with values calculated using multiple financial models to ensure a realistic and well-rounded estimate. It’s designed for everyone - from cautious investors to opportunistic traders.
And if you’re considering it, now is the time.
InvestingPro’s Flash Sale is live for just 1 more hour, with discounts up to 50%. That’s your cue to equip yourself with tools that don’t just inform you - they help protect and grow your capital.
Because when markets turn, it’s not the loudest voices that win - it’s the most prepared.
Read More: The One Stock Metric Investors Regret Ignoring & Missed a 41% Rally
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