Intrinsic Value
| The intrinsic value of an asset is its actual worth, based on its recent performance and other factors affecting it in the long term. This can be contrasted with its market value, which is based on what someone is willing to pay for the asset in the current market. The intrinsic value of an asset is important to consider when making investment decisions, because it can help you determine whether an asset is under- or over-valued. However, it can be difficult to calculate intrinsic value, as it depends on a number of factors, including the asset's future performance. There are a number of methods that can be used to calculate intrinsic value, but no single method is perfect. As such, it is important to use a range of methods and to consider all relevant factors when estimating intrinsic value. |
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