02 September 2010
Intrinsic Value Per Share = Net assets available to Shareholders/ No of Shares. Net Assets Available to Share Holder = Total Assets ( Excluding Prliminary Expenses) - External Liabilities. Intrinsic value per share represents the wealth of shareholder on a specific date.
The extrinsic value is based on the assumption that if comparable asset (or property) has fetched a certain price, then subject asset (or property) will realize a price something near to it, based on its own characteristics and situations. The theory behind this approach is that valuation measures of similar companies that have been sold in arms-length transactions should represent a good proxy for the specific company being valued.