Factors Influencing Stock Price vs. Value

Stock price and intrinsic value often diverge. While a company's fundamental value is rooted in its financial health, growth prospects, and competitive position, its stock price can fluctuate based on short-term market sentiment, macroeconomic trends, and investor psychology. Understanding this distinction is crucial for making informed investment decisions.

Table: Investopedia/Peter Gratton Source: Investopedia's "Factors That Move Stock Prices Up and Down"
Investopedia