What Is "Fair Value?"
A stock’s fair value, synonymous with intrinsic value, fair price, or target price, is a measurement for the true value
that a stock is worth. The fair value is estimated with the firm's underlying fundamentals. A common form of the
valuation process is the discounted future cash flow. A stock's market price is not necessarily equal to its fair value. The difference between the market price and the fair value is the pricing error.