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Definition: This is a hypothetical "real value" of a company that's calculated by considering the value of a company's earnings today.
TeenAnalyst Advice: People who calculate the intrinsic value of a company consider it to be the "real value" of a company. This is the idea that the price you see is not the real value of the stock so you calculate the intrinsic value in order to determine how much the stock is worth. If the intrinsic value is higher than what the stock is quoted at, it's considered undervalued. And vice versa.
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Don't Buy Stock in the Company You Work For
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