Intrinsic value is determined by taking into account the current supply and demand for the asset, as well as any other factors that might affect its pricing such as inflationary pressures or upcoming news updates. Fundamental value, meanwhile, is based on analyzing various metrics such as a company’s profits, cash flow, dividend yield etc. Technical analysis also provides valuable insights by looking at price patterns over time; investors can use this data to identify points of entry/exit for buying or selling stocks . Lastly , investor sentiment & expectations tend to play an equally crucial role since they have direct impact prices which then directly influence returns.
Overall , understanding how each type of valuation impacts one another is key getting most out investments . Therefore , it should always be kept mind that none single method or factor can guarantee success so diversifying risk through proper portfolio construction remains recommended course action whenever possible . With proper planning & research applied along side careful considerations given towards macroeconomic conditions – investors may increase chances achieving desired outcomes with minimal losses incurred during process