Intrinsic Value

October 8, 2013
Written by PenderFund

Intrinsic value is the actual value of a company as opposed to its current market price. If an investor can conservatively estimate an actual intrinsic value range for a company, then he or she can compare it to the current market price. If the current market price is higher, then the company is overvalued and you should consider selling. But if the current market price is lower, then you know the company is undervalued and, assuming a lot of other factors are favourable, you should consider buying.