Can some one explain to me the difference between intrinsic value and marlet price?

Question

Thanks EY

Answer 1

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