Intrinsic Value: the investor's North Star
Intrinsic value is an estimate of what a business is worth based on the cash it can generate over time, adjusted for risk. Market price moves every day; intrinsic value moves when fundamentals change.
Why it matters
- Helps you avoid overpaying when hype is high.
- Helps you buy with confidence when fear is high.
- Forces you to focus on cash flow, profitability, and balance sheet strength.
Margin of safety (simple definition)
Margin of safety is the "gap" between intrinsic value and market price. A larger margin can reduce risk if your estimate is wrong.
How Intrinsic Investor estimates value
We combine multiple valuation methods (for example DCF, relative valuation, earnings power / owner earnings, and more) and report a fair value plus supporting context. Different companies fit different models—so we avoid relying on a single number.
This is educational information, not investment advice.