Definition of intrinsic value

The intrinsic value of a stock is an estimate of what a company is really worth, regardless of its share price. It is based on fundamental analysis: earnings, assets, debt, and ability to generate cash flows.

Value investing estimates this value from earnings per share and a reasonable multiple, and stresses margin of safety: only buy when the price is well below your estimate.

In practice, no formula gives a “true” value; assumptions remain subjective. Intrinsic value is a reasoning tool rather than an exact number. On Valeur Intrinsèque, the calculator uses our own approach to give a range; use it as a starting point and cross-check with official filings.

Discounted cash flow (DCF) or peer multiples are other ways to estimate value. Each method has limits; the important thing is to understand the assumptions and not treat a single number as absolute truth.

Use our calculator to get a value range for any ticker, and the screener to filter stocks by fundamental criteria before estimating intrinsic value.

The blog has articles on free cash flow, valuation multiples and earnings growth; the FAQ answers common questions about the calculator and our method.