posted by Ed
Can some one explain to me the difference between intrinsic value and marlet price?
This reference should help explain that:
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