Target price is the price at which a security is expected to trade in the future. It is used by investors to gauge whether a stock is undervalued or overvalued.
There are a number of ways to calculate Target prices, but the most common method is to use a stock’s current price and compare it to its earnings per share (EPS). If a stock’s current price is less than its EPS, it is considered undervalued and may be a good investment. If a stock’s current price is greater than its EPS, it is considered overvalued and may be a good candidate for selling.
Target prices can also be calculated using technical analysis or fundamental analysis. Technical analysts use chart patterns to predict future prices, while fundamentalists look at factors such as company earnings, economic indicators, and insider buying and selling.
No matter which method is used, calculating Target prices is an important tool for investors. It helps them make informed decisions about when to buy and sell stocks.
