Intrinsic Value

Mental models

What a business is worth to a silent owner: all the cash it will produce over its life, discounted to today. Because every input is an estimate, practitioners compute a conservative range rather than a point and compare that range with the quoted price. Price is an input to the transaction and never to the appraisal.

7 books · 6 people behind it · 4 resources

Start here

The Little Book of ValuationAswath Damodaran, 2011
Expectations InvestingAlfred Rappaport, Michael J. Mauboussin, 2001
Valuation: Measuring and Managing the Value of CompaniesTim Koller, Marc Goedhart, David Wessels, 1990
Security AnalysisBenjamin Graham, David L. Dodd, 1934

The people behind it 6

Each person holds a book in this entry or names it in their own tags.

Investors 1

Benjamin Graham1 book here

Academics 5

Alfred Rappaport2 books here

Aswath Damodaran1 book here

David L. Dodd1 book here

Tim Koller1 book here

Judd Kahn1 book here

Resources 4

Everything Is a DCF ModelMichael J. Mauboussin · paper · Every multiple is a discounted-cash-flow claim in disguise.
Examining Valuation MultiplesMichael J. Mauboussin · paper · What a multiple is really a shorthand for.
The Calculus of ValueHoward Marks · memo · The relationship between price and value, stated plainly.
An Owner's ManualWarren Buffett · essay · Berkshire's economic principles, including opportunity cost.