One of the fundamental questions to answer when researching potential securities as investment options is whether the security is appropriately priced. Market bubbles formed by speculation can significantly over- or undervalue a particular company's stock, an industry of stocks, or even entire classes of investment vehicles. Such market bubbles can leave investors open to significantly more risk if they're not aware of them.

Projected Valuation takes into account many aspects of a company's fiscal health and determines what a fair price would be based on the firm's performance. A key difference between a Projected Valuation and a more common projected price is that a valuation shows what the company is worth without market speculation bias. Projected Valuation allows the investor to determine if the stock is overpriced or underpriced according to their investment strategy and use market bubbles to their advantage.