top | item 23518748

(no title)

bearzoo | 5 years ago

There are a lot of different definitions of intrinsic value. But it often has nothing to do with how much someone will give you.

There is the asset, an estimation of what the asset is truly valued at (intrinsic), and then finally the market price. In the case of the painting, the intrinsic value might be a function of a study of trends in demands of paintings, the artist, etc. The market price may or may not correctly factor in that information to price the painting well.

The fact that insider information does exist should paint a clear picture of why someones calculation of intrinsic value might be different from the market price.

Lastly, if someone gave me Hertz stock, I'd sell it ASAP and invest the money in something else.

https://en.wikipedia.org/wiki/Intrinsic_value_(finance)

discuss

order

No comments yet.