Intrinsic Value Of Share

Intrinsic value of a share refers to its true or actual value, based on fundamental analysis, rather than the market price at which it is currently trading in the secondary market. This value is determined by factors such as a company's financial health, earnings potential, and other key metrics. The most common methods to calculate intrinsic value include: 1. Discounted Cash Flow (DCF): This method calculates the present value of the company's expected future cash flows, adjusting for the time value of money. 2. Other valuation models: These can involve metrics like earnings, dividends, or asset values. By determining the intrinsic value, investors can assess whether a stock is overvalued or undervalued in the market.