is intrinsic value better than market value for investing 
some people believe it is market value is determined by what people are willing to buy an asset for based on any number of reasons these might include someone s financial needs short term trading goals and trading impulses on the other hand intrinsic value measures the value of an investment based on specific information about it such as its cash flows and its actual financial performance the bottom lineknowing how to calculate intrinsic value is useful for investors trying to get at an investment s true value that s because intrinsic value is based on future cash flows not simply where an investment may be trading currently value investors in particular seek to know intrinsic value because it helps them understand whether an investment is appropriately priced according to their investing approach since knowing intrinsic value is considered fundamental to analyzing securities it s a good idea for investors to understand how to calculate it 