Intrinsic value: what it is and how to read it

What it is

What the share is worth according to the model, based on the cash the company will generate in the future, discounted to today's value.

How to read it

Intrinsic value is an estimate, not a fact: it changes with the assumptions about growth, margins and return. That's why it's better to look at a range of scenarios than at a single number.

Educational information; not a recommendation to buy or sell.