What is the intrinsic value and market value of shares and how are they determined?

Question

What is the intrinsic value and market value of shares and how are they determined?

Answer 1

Intrinsic means inherent value of the shares. a monetary value for acquiring it. obviously we need currency. i guess the amt of currency needed to buy a share will be the intrinsic value

Answer 2

Shonz,

Intrinsic value showing the real value of a stock to identify the possible returns from the same. Calculating intrinsic value is little difficult and tricky. But it is possible. The term intrinsic value originally start using by Legend value investor Benjamin Graham. After him, his favorite student Warren Buffet adopt that and he is successfully using the intrinsic value calculation method to identify a stock to buy or avoid.

Search for the term "Margin of safety calculation formula of Benjamin Graham" with any search engine, this will give you the result with exact formula required to use to find this value.

If you are not able, use the contact form in my blog, I will send you the exact address

Answer 3

Intristic Value means monetary value for acquiring it and you have to calculate yourself as monies was paid by you.

Market Value is the value of that particular share at which the trading is effected. Almost all national and leading regional newspapers carries the market value of previous day. Or you can know it instantly on TV during business hours (10 am to onwards). Many channels are airing the prevailing rates at Mumbai Stock Exchange.