Intrinsic Value Assessment Framework

Every price is a statement about value. But whose value — yours or the market's? This framework gives you the process to calculate your own answer before the market influences you.

Why This Matters

Intrinsic value is the central concept of value investing, yet most investors estimate it loosely or not at all. Without a rigorous process, "value" becomes whatever justifies a decision already made emotionally. This five-step framework structures the calculation into three independent components — earnings power, asset value, and growth value — producing a defensible range rather than a single number that creates false precision.