EagleTed
12-04-2002, 11:44 AM
http://news.morningstar.com/doc/article/0%2C1%2C83795%2C00.html
Sum up our fair value estimates, divide by the divisor of the Dow, and there we are. Doing this yields a fair value for the Dow of about 9,200, which is approximately 450 points higher than the average's current value. (Click here for current quotes for all Dow stocks. Premium members can also click through to also see our fair value estimates for each.)
The Dow's Distribution of Value
So when we look at the market stock-by-stock, it's neither egregiously overvalued nor tremendously undervalued. Interestingly, this “fairly valued” assessment is borne out by the distribution of over- and undervalued stocks in the Dow--according to our fair value estimates, nine Dow components are overvalued, 11 are undervalued, and the remaining 10 trade right about where they should.
Sum up our fair value estimates, divide by the divisor of the Dow, and there we are. Doing this yields a fair value for the Dow of about 9,200, which is approximately 450 points higher than the average's current value. (Click here for current quotes for all Dow stocks. Premium members can also click through to also see our fair value estimates for each.)
The Dow's Distribution of Value
So when we look at the market stock-by-stock, it's neither egregiously overvalued nor tremendously undervalued. Interestingly, this “fairly valued” assessment is borne out by the distribution of over- and undervalued stocks in the Dow--according to our fair value estimates, nine Dow components are overvalued, 11 are undervalued, and the remaining 10 trade right about where they should.