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.
Put This Knowledge Into Practice
Use our tools to find undervalued stocks with high margin of safety.
Cite This Page
Intrinsic Investor (https://www.intrinsic-investor.com/learn/intrinsic-value) - What is Intrinsic Value? A Beginner Guide
APA Style
Intrinsic Investor. (2024). What is Intrinsic Value? A Beginner Guide. Intrinsic Investor. Retrieved from https://www.intrinsic-investor.com/learn/intrinsic-value
MLA Style
"What is Intrinsic Value? A Beginner Guide." Intrinsic Investor, January 15, 2024, https://www.intrinsic-investor.com/learn/intrinsic-value.
BibTeX
@misc{intrinsic_investor_learn_intrinsic-value,
author = {Intrinsic Investor},
title = {What is Intrinsic Value? A Beginner Guide},
year = {2024},
url = {https://www.intrinsic-investor.com/learn/intrinsic-value},
note = {Accessed: January 9, 2026}
}