It can be useful data, fair value, when considered along with MUCH other information - and using multiple sources. Why do I use multiple sources for fair value? Because there are many ways to calculate "fair value", not a single common standard. And like many other investment data points, it calls for the analyst(s) calculating it to use ASSUMPTIONS about certain factors or other data points - for example, perhaps things like future potential market (wow, that alone is problematic!), future P/E ratios, future earnings, future interest rates (some companies are obviously much more sensitive to interest rates than others), national and world economies, on and on and on. The more data that I can factor in without getting confused or overwhelmed by it, the happier I am. If somebody finds a magic bullet data point or analytical tool that is right significantly more often than others, please let me know. I'll warn you ahead of time that I won't believe you until I test it myself.
It’s super important to check the fair value of a stock before diving in. I remember when I was looking at $PFE (Pfizer) a while back, I did a ton of research on its fair value and was surprised to find it was undervalued at the time.
