What is Intrinsic value? Intrinsic value is the true assessed value of a company. Right now a stock may be trading at a market capitalization of 60 Billion. The assessed intrinsic value may be 100 Billion. This simply means that the investor is betting that the stocks per share price rises to reflect the price of a company with the market capitalization of 100 Billion within the next 12-36 months. These are normally long term investments based on future earnings, dividend payouts, possible acquisitions, and cash on hand projections. What is Intrinsic value? Intrinsic value is the true assessed value of a company. Right now a stock may be trading at a market capitalization of 60 Billion. The assessed intrinsic value may be 100 Billion. This simply means that the investor is betting that the stocks per share price rises to reflect the price of a company with the market capitalization of 100 Billion within the next 12-36 months. These are normally long term investments based on future earnings, dividend payouts, possible acquisitions, and cash on hand projections.
Posted on: Mon, 17 Mar 2014 11:41:02 +0000
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