What is Intrinsic Value? Learn From The Greats

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INTRINSIC VALUE

One, it is the price that you think a rational and well-informed buyer would be willing to pay for the entire company.

It is the amount of cash that you expect if the company liquidated itself and distributed the proceeds to shareholders.

Or it is the present value of the amount of cash that you expect the company to generate over time, discounted back to the present. That’s it.

And those are all really just different ways of saying  the same thing. An intrinsic value is not a point. It changes over time and it is typically a range of values. Our goal is to try to come up with a reasonable value bon what rational people would be willing to pay.  –  Keith Trauner of Goodhaven

Intrinsic Value READINGS

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What is Intrinsic Value? Learn From The Greats

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