Intrinsic value

Inherent or the right value

Sriram Somayajula

Admin

18-Jul-22 10:57

We calculate intrinsic value of the share by dividing the total assets by the total equity shares.This is done so to arrive the value of single share.

Shankari C

CA Inter

★ 3K+

18-Jul-22 14:07

Total net assets na .....

Priyanka R

CA Inter

★ 20K+

18-Jul-22 16:25

Assets - liabilities

Shankari C

CA Inter

★ 3K+

18-Jul-22 16:34

Intrinsic value actual meaning is take for example a rupee coin. The face of coin represents 1 rupee so face value is one rupee and the cost of producing such coin i.e., generally coins are manf wth stainless steel and u need to calculate the cost of production of such coin with stainless steel. In breif , earlier at the ancient times we used to have currency made up of gold . So in such case the cost of producing coin with gold becomes expensive so the cost of producing the coin i.e., the inner value of coin is Known as intrinsic value

Thanusha Lakshmi

CA Final

★ 3K+

18-Jul-22 20:55

intrinsic value of a share means if the company is liquidated today then how much every shareholder would recieve. Intrinsic value = Total assets - Outside liabilities - Pref div (unpaid) - Preference share capital ÷ No of equity shares. It is an important measure which also helps people to determine whether the share is overpriced or not.

Rick Y

CA Final

★ 2K+

18-Jul-22 22:07