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Old 12-15-2005, 02:43 AM
Evan Evan is offline
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Join Date: Jun 2004
Location: sthief09: im kinda drunk from the nyquil
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Default Re: Buy Good Value and/or What Other People will Like?

Okay, I guess we have different definitions of "intrinsic value"?

Intrinsic value, as I'm using the term, is the present value of future cash flows. In determining future cash flows you have to forecast future growth. So that 15% growth next year (and for however many years) will already be accounted for in today's intrinsic value.

Basically what I'm saying is that intrinsic value has nothing to do with the price of the stock today.

Here is a valuation I did for Monsanto. That, as I understand it, is a calculation of intrinsic value. Is that not the term you'd use for this?
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