The intrinsic value of a common stock is its

Question

Quizplus · Accepted Answer

The intrinsic value of a common stock is its true value. This refers to the actual worth of the stock, which takes into account not only tangible factors such as the company's financials and assets, but also intangible factors such as brand value, management quality, and market reputation. The intrinsic value is often calculated using fundamental analysis techniques such as discounted cash flow analysis or price-to-earnings ratio analysis. Book value refers to the value of a company's tangible assets, beta value measures a stock's volatility compared to the market, and alpha value measures a stock's performance relative to the market.

The Intrinsic Value of a Common Stock Is Its