The trader may not care about the real valuation of the business. They are traders after all, and not long term holders of the stock.
But it is possible to calculate the valuation of a business for purposes of establishing a company's intrinsic value as an investment. In fact, there is no shortage of investment services or industry analysts who do this type of thing. Their assessments are readily available. Unfortunately, they don't universally agree on those valuations because of the underlying assumptions to the valuation models that are usually based on a discounted cash flow analysis. In the final analysis its all about a company's ability to generate future earnings and there is also no shortage of such historical information or projections.
From a mathematical perspective it is possible to determine what a company is worth (i.e., its intrinsic value). But lots of things, including the quality of company management, go into assessing a company's future ability to grow its earnings and/or pay a reliable stream of dividends.
Its a fascinating area to study.
Do you see the difference ?
A bushel of wheat - versus a fascinating complex study of business valuation.
Mind you by trader, I mean anyone who buys and sells stock, including joe and joanna six pack.
Do you know why joe and joanna six pack should be investing mostly in bonds instead of stocks ?