Intrinsic Value, Intrinsic Value of Stocks, and Intrinsic Value of Share

Learn what intrinsic value of a stock means, how to calculate it, and key risks. Simple guide for smart investing and identifying undervalued shares. Intrinsic Value: What It Means and Why It Matters When investors evaluate a stock, one of the most important concepts is its intrinsic value . The intrinsic value of a company’s shares is an estimate of what the stock is “really worth,” based on fundamentals, future cash flows, and the business itself—not just what the stock is trading at today. In simpler terms, if the stock market quotes a share at ₹200, that is its market value . But the intrinsic value might be ₹250 or ₹150, depending on calculations and assumptions. If the intrinsic value is higher than the market price, some see that as an opportunity to buy; if it’s lower, it may suggest overvaluation. More details are available on the Finowings page about how to calculate intrinsic value. Why Is Intrinsic Value Important? Intrinsic value of stocks helps investors: Ide...