Tag: ratio

How I Estimate Intrinsic Value

Value investing is based on the premise that the market is irrational, and that stock prices therefore do not always match the actual value, or intrinsic value, of the security they represent. Value investors like Warren Buffett try to¬†calculate¬†a company’s intrinsic value to see if its stock is currently selling at a discount or a premium, and by how much. Continue reading “How I Estimate Intrinsic Value”

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