Intrinsic Value

Valuation

What is Intrinsic Value?

A model-based estimate of what a stock may be worth based on fundamental analysis. Results depend on the assumptions used and the valuation model selected.

Why Intrinsic Value matters

Comparing a model estimate to the current market price can indicate whether a stock is trading above or below the model's output. This is not a guarantee of future performance.

Related terms in Valuation

DCF (Discounted Cash Flow)Market Capitalization P/B Ratio (Price-to-Book)P/E Ratio (Price-to-Earnings)P/S Ratio (Price-to-Sales)PEG Ratio Residual Income Model Terminal Value

Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.