Fair Value, What is it?

Fair value is an estimate of a stock's "true" worth based on fundamentals, earnings, cash flows, assets, growth, rather than its momentary market price. The idea is that market price swings above and below fair value on sentiment and news. When price sits below fair value by a sufficient margin, the stock is "undervalued" and may be an opportunity; the reverse is "overvalued." Estimation methods vary (discounted cash flow, sector multiples) and all rely on assumptions, so they are estimates. FoudaLens shows a fair-value estimate per stock as a guide, not a recommendation.