Fundamental Glossary / Valuation Methods
Intrinsic Valuation
The process of estimating intrinsic value from the business's own cash flows or assets, rather than from peer multiples.
Formula
DCF valuation, dividend discount, earnings power value, and asset-based valuation are the usual tools. The output is a value or a range.
What it means
Intrinsic valuation looks inward. Relative valuation looks sideways. You want both. Intrinsic valuation protects you when the whole market for a sector is mispricing cash flows the same way.
It is the procedure. Intrinsic value is the number the procedure produces. They are listed separately so the estimate is not confused with the method.
How to read it
Write the value as a range under stated assumptions, and say what would change your mind. A single-point intrinsic valuation implies a precision the inputs do not have.
What to watch
An intrinsic valuation that uses aggressive peer multiples inside the terminal value has quietly become a relative valuation. Know which one you did.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.