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How Do You Know When A Stock is Priced Right?

Know the game show Price is Right? Well, value traders play their own version of that game every day as they attempt to determine if a stock accurately reflects a company’s valuation or is priced right.

But it’s not an easy game – and just like the popular show, there’s a lot to win and a lot to lose.

What must you know before you play?

In a live interview on CNBC’s Fast Money, Aswath Damodaran author of The Little Book of Valuation, reveals some of his secrets.

Get all the details. Watch the video now!






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Trader disclosure: On May 17, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova Owns (OXY); Terranova Owns (XOM); Terranova Owns (KSS); Terranova Owns (BJ); Terranova Owns (DIS); Terranova Owns (TM);Terranova Owns (MCD); Terranova Owns (PEP); Terranova Owns (PFE); Terranova Owns (BAX); Terranova Owns (V); Terranova Owns (JPM); Terranova Owns (VRTS); Stutland Owns (INTC), Is Short (INTC) Calls; Stutland Owns (GLD); Stutland Is Short (GOOG) Put Spread, Is Long (GOOG) Call; Stutland Owns (SLV) Put Spreads, Is Short (SLV) Calls, Owns (SLV); Stutland's Firm Makes Markets In SPX Options, Holds Hedged e-Mini And Options Position; Stutland's Firm Makes Markets In VIX Option And Holds Hedged VIX Futures And Options Position; Stutland Is Long Australian Foreign Debt Held In Australian Dollars

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Brian Kelly
Accounts Managed By Brian Kelly Capital Own (TLT) Calls
Accounts Managed By Brian Kelly Capital Are Long Australian Dollars
Accounts Managed By Brian Kelly Capital Own (AGO)
Accounts Managed By Brian Kelly Capital Own (EBAY)
Accounts Managed By Brian Kelly Capital Own (MCP) Calls
Accounts Managed By Brian Kelly Capital Own (BHP)
Accounts Managed By Brian Kelly Capital Are Short Yen

For David Khani
FBR Capital Markets Has Recieved Investment Banking Compensation From (CNX), (MEE) In Past 12 Months
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (CNX), (MEE), (ACI), (BTU), (SLM), (ZINC), (ANR), (PCX), (CLD)
(NRP), (ACI) Is An Investment Banking Client Of FBR Capital Markets
FBR Capital Markets Has Acted As Placement Agent On Private Offering Of Arch Coal Securities
FBR Capital Markets Has Recieved Investment Banking Compensation From (ACI) In Past 12 Months

For Aswath Damodaran
***No Dislcosures

For Jennifer Davis
Lazard Freres & Co. LLC Has Recieved Investment Banking Compensation From (VRA) In Past 12 Months
Lazard Capital Markets LLC Has Managed Or Co-Managed Offering For (VRA) In Past 12 Months



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