Hello everone.. what is the difference between book value ,intrinsic value fair value and market value of a share ?
The book value is the value in the Balace Sheet, it is based in accounting. Fair value is the right price of the stock, if you believe in the efficiency of the market then the fair value and the market value of the share will be the same. The intrinsic value according to Investopedia is The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value.
yes book value = historical value in a sense Fair value = Stock value considering present values market value=Stock value considers Extrinsic factors of investors intrinsic value perhaps has to be Fair value
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