US EditionUp 81% from its 1-year low, has Burberry’s share price rebound left it seriously overvalued?
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Up 81% from its 1-year low, has Burberry’s share price rebound left it seriously overvalued?
Burberry’s (LSE: BRBY) share price is up 81% from its 9 September 12-month traded low of £5.56. Such a large price rise does not necessarily mean that the stock is overvalued. It could be that the underlying business is simply worth more than it was previously. However, it could also be that the price has overshot the fair value of the stock. In this event, a downward correction to its true value is likely to occur over time, in my experience. I…
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