This reference should help explain that:
http://en.wikipedia.org/wiki/Benjamin_Graham
Market price can fluctuate wildly and is simply the price at which sellers and buyers agree to transfer shares at a given time.
Intrinsic value is what a stock is really worth, after carefully and impassionately considering the book value (assets minus liabilities per share), indebtedness, earnings, return on assets, growth prospects, and risk factors
Can some one explain to me the difference between intrinsic value and marlet price?
Thanks EY
1 answer