A Comparison between Expected Value and Stock Market Price

One of the most important factors of economic development is optimum allocation of resources especially financial resources. Basically, capital market facilitates the buying and selling of securities such as shares and bonds. Hence, the main question of the present research is whether stock market price is near to intrinsic value of food and beverages industries groups stock in Iran or not. Like any other assets, the value of financial assets is equal to the present value of the stream of cash flow called intrinsic value. For valuation of shares, the model of present value has been used in this paper. In order to answer the research question, we test the equality of average of market value to the present value of stock.The results show that stock market price is bigger than the intrinsic value. Hence, wecanconclude that there is no systematic relationship between dividends and stock market price in the Stock Exchange Market.