From Motley Fool…..
What is a stock worth? You could simply go with the current stock price. But that price is subject to the market’s whims. Another alternative is to determine the stock’s intrinsic value. The intrinsic value of a stock is its true value. It refers to what a stock (or any asset, for that matter) is actually worth — even if some investors think it’s worth a lot more or less than that amount.
You might think calculating intrinsic value would be difficult. That’s not the case, though. Not only can you determine the intrinsic value of a stock, but you can also use it to search for the best bargains in the market. Knowing an investment’s intrinsic value is useful, especially if you’re a value investor with the goal of buying stocks or other investments at a discount.
