In the fast-paced world of investing, timing is everything — but knowing what a stock is really worth can make all the difference between catching a multi-bagger or watching an opportunity pass you by. That’s why more and more investors are turning to one powerful metric: fair value.
Fair value represents the true intrinsic worth of a stock based on its underlying fundamentals. While calculating this used to require complex spreadsheets and hours of analysis, that’s no longer the case. Today, this entire process is automated, precise, and available at a glance — thanks to a feature quietly gaining popularity among serious investors.
Imagine this: On May 11, 2024, CEAT (NSE:CEAT) Limited was trading at around INR 2,238. On the surface, it looked like just another stock — until a quick check of its fair value revealed a different story. The stock was undervalued, with a calculated fair value of INR 3,083.1 — implying a strong upside potential of 37.7%.
Image Source: Investing.com
Fast forward to September 26, 2024, and CEAT hit that mark, handing smart investors a solid return in less than five months.
That’s the kind of edge fair value can provide. While the broader market debates sentiment and news cycles, fair value quietly cuts through the noise — highlighting stocks that are mispriced relative to their true financial health and performance potential.
Had you known CEAT was trading below its intrinsic worth, would you have taken the chance?
The fair value feature on InvestingPro offers that insight across thousands of global stocks, with no manual modeling required. It brings clarity in uncertain markets and provides a powerful tool to identify both hidden gems and overpriced hype.
With discounts of up to 45% currently running, this might just be the best time to gain access to professional-grade tools that were once only available to institutional investors. Because in the world of investing, those who see value first often win big.
CEAT was just one opportunity — the next one might already be waiting. Will you catch it in time?
Read More: This Stock is Up 29% Since Picked Up By Bharat Market Outperformers
X (formerly, Twitter) - Aayush Khanna
LinkedIn - Aayush Khanna