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Intrinsic Value of A share

Vijay Sarathi H (PARTNER) (562 Points)

26 May 2009

What is meant by INTRINSIC VALUE of a share?

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Milan Somani (CA) (1456 Points)
Replied 26 May 2009

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.

CA Mohd Gouse (Chartered Accountant) (497 Points)
Replied 27 May 2009

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..

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Aditya Jain (Final (New) November 2011) (763 Points)
Replied 27 May 2009

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

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Sumit Jain (CA) (4760 Points)
Replied 27 May 2009

Intrinsic value is we can say the book value of shares

net shareholder wealth in the company

RAMANJU (here to updating the knowledge) (485 Points)
Replied 27 May 2009

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.

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Rahul Chobdar (Chartered Accountant (Financial Management)) (561 Points)
Replied 27 May 2009

Thank You all even i had a query regarding intrinsic values

Vijay Sarathi H (PARTNER) (562 Points)
Replied 27 May 2009

Thank u frens.

Abhay Shah (Finanace Manager) (25 Points)
Replied 12 September 2009

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

RUPA (ARTICLESHIP) (39 Points)
Replied 18 September 2011

Thank u frenDSSSSSSSSSSSS i als had doubt

RUPA (ARTICLESHIP) (39 Points)
Replied 18 September 2011

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,..