Intrinsic Value of A share

Intrinsic value is a measure of value based on the future earnings a company is expected to generate for its investors - it attempts to measure the total net assets a company is expected to build in the future. It is considered the true value of the company from an investment standpoint and is calculated by taking the present value of the earnings (attributable to investors) that a company is expected to generate in the future, along with the future sale value of the company. The idea behind this measure is that the purchase of a stock entitles the owner to his or her share of the company's future earnings. If all of the future earnings are accurately known along with the final sale price, the company's true value can be calculated.

In Simple way Intrinsic Value is Value of share when Company goes into Liquidation & when assets &  Laiblities are settled balance amount what Shareholder get per share is Called Intrinsic value..

Intrinsic Value = Total Assets (excluding preliminary expenses ) - Outside Liabilities / No. of Equity Shares

Intrinsic value is we can say the book value of shares

net shareholder wealth in the company

Thank You all even i had a query regarding intrinsic values

Thank u frens.

 whether to treate  def  tax liab as internal liab or outside?? in calculating intrinsic value.

Thank u frenDSSSSSSSSSSSS i als had doubt

i gplss explain wit a example,n hw to apply on equity share.. so doutb is clear of mine... concept is clear wit help of all bt hw to use on eq share,.. 

why is it not applicable to preference shares