Intrinsic Value

Intrinsic value is an estimate of what a company is genuinely worth based on the business itself — its earnings, cash flow, assets, and prospects — rather than whatever mood the market is in on a given day. Value investors compare intrinsic value to the market price to judge whether a stock looks expensive or cheap. The intrinsic value Market Lens shows in its analyzer averages the Graham Number with a growth-adjusted fair-P/E value (fair P/E alone for Technology, Communication Services, Healthcare, and Consumer Cyclical); its DCF is a separate estimate shown alongside.