Intrinsic Value vs Market Value 💰


🔹 Intrinsic Value:

It’s the true or fair value of an asset based on its fundamentals — like earnings, cash flow, and growth potential — rather than the current market price.

👉 Think of it as what a stock should be worth.

🔹 Market Value:

It’s the current price of the asset in the market — the price investors are willing to pay or sell for right now.

👉 It reflects demand and supply, not necessarily the company’s real worth.

📊 Example:

If a company’s intrinsic value (based on analysis) is ₹500, but the stock is trading at ₹350, it’s considered undervalued — a potential buying opportunity.

🧠 In short:

Intrinsic Value = What it’s really worth

Market Value = What people are paying for it

Regards

Shining Stars 🌟🌟🌟

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