theoretical stock

Definitions

The estimated value or quantity of a stock based on mathematical models or formulas rather than physical counts.

The projected amount of inventory that should be on hand based on sales records and procurement data, often used to identify shrinkage.

Examples

The analyst calculated the theoretical stock price based on the company's projected future cash flows.

Investors often compare the current market value against the theoretical stock value to identify potential buying opportunities.

Using the Black-Scholes model, the firm determined a theoretical stock valuation that accounted for market volatility.

Synonyms

hypothetical stock paper stock notional holding virtual equity simulated position model portfolio projected asset

Antonyms

actual stock real holding physical share tangible asset settled position verified equity cash stock