# investing

posted by Ed

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

Thanks EY

1. drwls

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

## Similar Questions

1. ### human services

Could someone explain to me the difference between a response that compares and contrasts intrinsic and extrinsic motivation. and also give an example of each.
2. ### Investing

If the market is efficient, what happens to the intrinsic value (proper price) and the price at which the market is pricing the stock out at?
3. ### investing 3-20

The value of common stock depends on the A. price of the stock. B. retirement date. C. present value of cash flows. D. coupon rate. I need help with this one
4. ### Investing ( pease help)

You have been assigned the task of using the corparate ,or free cash flow , model to estimate Petry's Corporation intrinsic value. the firm WACC is 10.00% , its end of year cash flow ( FCF)IS EXPECTED TO BE 90.0 MILLION, THE FCFs are …

The contrarian approach to investing is best illustrated by A. staying out of the market no matter what experts are saying. B. always buying when others are selling. C. investing in mutual funds, contradicting the idea that investing …
6. ### Coporate Finance

Two-State Option Pricing Model T-bills currently yield 5.5 percent. Stock in Nina manufacturing is currently selling for \$70 per share. There is no possibility that the stock will be worth less than \$65 per share in one year. a. What …
7. ### physics

In a double-slit experiment, two beams of coherent light traveling different paths arrive on a screen some distance away. What is the path difference between the two waves corresponding to the third bright band out from the central …
8. ### algebra 1

Gordon is evaluating some stocks he wants to purchase. You can see the function of the stock price below. The variable x represents days. Stock A B C Price f(x) = 25(1.08)x x f(x) 0 22.00 1 21.56 2 21.13 The initial price of this stock …
9. ### Accounting

I find a lot of definitions on the internet, but still confused. What is difference between -carrying value -book value -fair value -fair market value -market value -value in use -net realizable value Are some of these actually the …
10. ### Introduction to Finance

I just need help with these two questions: 1. The difference between the historic price a firm paid and its going price among current buyers and sellers is the difference between its a) market value and depreciation b) book value and …

More Similar Questions