This is not to say that there are not misunderstood companies out there, but it is quite brash to imply that the market price, and hence Wall Street, is wrong. Valuation techniques vary depending on the industry group and specifics of each company. For this reason, a different technique and model is required for different industries and different companies. This can get quite time consuming and limit the amount of research that can be performed. A subscription-based model may work great for an ISP, but is not likely to be the best model to value an oil company.
Fair value is based on assumptions.
Any changes to growth or multiplier assumptions can greatly alter the ultimate valuation. However, even on a worst case, most models are almost always bullish, the only question is how much so. 99 Cents Only Stores Salomon Smth Brny at Buy American Dental Partners Inc Warburg Dillon Read at Buy Ann Taylor Stores Corp Deutsche Bc Alex. Baldor Electric Co George K. Baum at Strong Buy bebe stores, inc Deutsche Bc Alex. Br at Mkt Perform Charlotte Russe Holding Inc Deutsche Bc Alex.