[mtd1523]

Does anybody know of a way or website that will explain a good way to figure out the intrinsic value of a stock?

Thanks.

[dpakman91]

Originally posted by mtd1523
Does anybody know of a way or website that will explain a good way to figure out the intrinsic value of a stock?

Thanks.

there are plenty of website that indicate how, just do a search on google for 'calculate intrinsic value stock'

here's one that seems good: http://www.teenanalyst.com/stocks/intrinsic.html

however, it's probably even more important to know more about intrinsic value and why it's so important. the absolute BEST book to read about this is "security analysis" by the infamous benjamin graham. you can no doubt find it at your local library if you don't want to buy it.

[harrymcwealth]

look on msn money via msn.com
or you can sign up with value line.
btw you can't really determine the "intrinsic" value of a stock.
you can usually only look at the book value or the p/e ratio.
even then it's still difficult to determine what the stock is worth.
supply and demand is the strongest factor, hands down, in determining the appreciation of any stock.
price of shares aren't always based on annual earnings (unless they're stupendous).
look at research in motion, it wasn't even making money prior to this year, then it shot up (adjusted for splits of course).
clearly people aren't interested in the money a company makes.
it's all speculation.
well it depends on the position you wish to take in the stock market, either long term or short term.
or medium term.

[Redbaron]

Originally posted by harrymcwealth


btw you can't really determine the "intrinsic" value of a stock.

The Intrinsic value can be calculated. Although there is a certain amount interpretation, the intrinsic value is a valuable measure.

Take for example Candain Pacific in Canada. This was a conglomerate started by CP Railways.

As is the case with Railways, expansion and internal investment is limited. Once the track is laid the track is laid. So they started to invest in other business' ie. CP Hotels (Fairmont), PanCanadian Oil and shipping etc. The value of those divisions was represented in one stock. However, the value of it's individual pieces was greater than what the stock was trading at. Namely, the intrinsic value was greater than it's market value, measured by analysis of it's divisions. This created a value stock. Now, this knowledge is not that useful unless one knows how to get that value out of the stock, a trigger, some event to unlock it's intrinsic value. In this case it was a complete corporate restructure. Shareholders holding CP were rewarded with new stock in the divisions, now individual companies. It was this event that unlocked the intrinsic value.