Intrinsic Value | Alpha Quadrant by The Fifth Person

Questions › Category: Investor Psychology › Intrinsic Value

FQY asked 3 years ago

There seems to be different ways to measure the intrinsic value of a company, some even use range values. From google search, it appears that the intrinsic values for Amazon and Alphabet shares follow quite closely to the intrinsic values calculated by AQ, but when searched for comparisons for Marketaxess and Veeva, both counters seem to have intrinsic values lower than market prices, the former was over valued by 10%, the latter by 55%. Can explain? I am confused. Thank you.

2 Answers

0 Vote Up Vote Down

Victor Chng Staff answered 3 years ago

Hi FQY, Intrinsic value (IV) for every investor is derived differently. It depends on what the person inputs while deriving the IV.

You just have to be consistent with your method to calculate the intrinsic value.

I hope this answers your question. If not, feel free to ask :)

0 Vote Up Vote Down

Kai Yeen Wong answered 3 years ago

Hi Victor, You mentioned during the webinar that there's a template to calculate the IV? Can I know where I can download it? Thanks KY

Victor Chng Staff replied 3 years ago

Hi KY,

You can go through this video on how to use the template – https://alphaquadrant.com/lessons/how-to-plot-a-valuation-chart/

Then go to the more tab and download Alpha Quadrant Valuation model.