52-Week Range
The 52-week range is the highest and lowest prices that a stock has traded for in the past 52 weeks. It is a measure of a stock's volatility and can be used to help investors determine whether a stock is overvalued or undervalued.
The 52-week range is calculated by taking the highest price that a stock has traded for in the past 52 weeks and subtracting the lowest price. For example, if a stock has traded for a high of $100 and a low of $50 in the past 52 weeks, its 52-week range would be 50.
The 52-week range can be a useful tool for investors because it can help them to identify stocks that are trading at a relatively high or low price. Stocks that are trading near their 52-week highs may be considered to be overvalued, while stocks that are trading near their 52-week lows may be considered to be undervalued.
However, it is important to note that the 52-week range is only one indicator of a stock's value. Other factors, such as a company's financial health and its future prospects, should also be considered before making an investment decision.
Here are some additional things to keep in mind when using the 52-week range:
- The 52-week range is a historical measure and does not guarantee that a stock will trade within that range in the future.
- The 52-week range can be affected by factors such as news events, economic conditions, and changes in a company's financial health.
- The 52-week range is not the same as the average price of a stock. The average price is calculated by taking the sum of all the prices that a stock has traded for in the past 52 weeks and dividing that number by the number of weeks.