Residual Income Model?

Question by : Residual Income Model?
Is anyone familiar with this model/theory? Why would it not be equal to a company’s actual/current share price?

I’ve been asked to use it to estimate the share price of Alaska Airlines (Ticker Symbol ALK), using the following site for financial info:

http://finance.yahoo.com/q/ks?s=ALK

Best answer:

Answer by Mr. X
Share price is usually based to perception, not necessarily on the performance of the company.

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