What is Intrinsic Value? | Gavin Ross & Co

(Last Updated On: November 20, 2019) What is Intrinsic Value? There is an objective, determinable value for any investment, which is independent of the stock market. This is known as its intrinsic, real or true value, and is defined as “the discounted present value of all the cash that can be taken out of a business during its remaining life”. This universal value formula is applied to valuing bonds (government or corporate debt issues), when sold in the market before their maturity date. The formula actually applies to all investments be they bonds, stocks, real estate, commodities, works of art, or government bonds. With bonds the interest rate and maturity … Continue reading What is Intrinsic Value? | Gavin Ross & Co