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<p>[QUOTE=&quot;Cloudsweeper99, post: 1355542, member: 3011&quot;]Price and value are different measurements.&nbsp; Let me give you an example.&nbsp; From using the financial statements of a company for the past several years, I can calculate the approximate intrinsic value of the stock of the company.&nbsp; Only after that does an investor need to compare the calculation to the current market price to make a buy sell decision.&nbsp; Comps are widely used in residential real estate because the buying and selling is all based on supply, demand and sentiment.&nbsp; With common stocks, it is more profitable and logical to make sure the intrinsic value exceeds the market price.</p><p><br /></p><p>Note: People don&#039;t have to be able to calculate the value of a company to do this.&nbsp; Other measures such as price to earnings [or cash flow] or price to net asset value work very well also.[/QUOTE]</p><p><br /></p>

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