Value investing is attempting to buy stock or other financial assets for less than its worth also called Intrinsic Value. Intrinsic Value is one the most fundamental concepts in Value Investing and for most the most critical thing to measure, Calculating Intrinsic Value is more art than science.
Every asset class in this world has some finite worth, intrinsic value refers to real value of any asset class. One the way to think of intrinsic value is what is the value a rational cash paying buyer would pay to own this entire company. A second way of thinking about it is using a Discounted Cash Flow methodology, in which one estimates the future free cash flow of the company and discounts back to present to know what these cash flows worth today.
'The Art of Value Investing' is a masterpiece on Value Investing, In summary, there are very valuable lessons to take way from the talk on Investing in general...
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