Does "cheaper" mean more valuable stock?

CFA Level I
#1

thanks

#2

No, thanks

#3

it’s all relative… if it is cheaper relative to its risk, then yeah, it’s more valuable. if it’s a company has filed for ch11 and it’s trading at 1 penny, it might not be as valuable as it seems!

#4

Right, and I think in general when you hear people talk about stocks being cheap right now they do mean on a relative basis, (e.g., on a P/E basis) and not actually referring to the price of the stock in $