What is intrinsic value in investing?

Intrinsic value refers to the true, inherent worth of an asset, determined through fundamental analysis. It represents the value of an asset based on factors such as earnings, dividends, growth potential, and overall financial health, rather than its current market price.

How is intrinsic value calculated?

Intrinsic value can be calculated using methods like Discounted Cash Flow (DCF) analysis or the Price-to-Earnings (P/E) ratio. These methods estimate the present value of future cash flows or earnings and compare them to the current market price of the asset.

Why is intrinsic value important?

Intrinsic value is important because it helps investors assess whether an asset is overvalued or undervalued by the market. By understanding the intrinsic value, investors can make more informed decisions about buying or selling assets, with a focus on long-term value creation rather than short-term market fluctuations.

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Fundamental Analysis

What is INTRINSIC VALUE?

INVESTMENT PERCENTAGE

Investment Percentage reflects the proportion of account capital allocated, giving traders a relative measure of their capital commitment and its role in their overall portfolio.

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