Stock intrinsic value is the value of a stock true worth. If you are looking to buy stock make sure to check the stock intrinsic value before buying. Now you should do more research, but I started getting into the stock market and I notice this is one of the most important things to know about a stock, that way you don’t overpay for a stock.
Formula:
Value of stock = (CCE−DGR)/EDPS
where:
EDPS=Expected dividend per share
CCE=Cost of capital
equityDGR=Dividend growth rate
Stock intrinsic value
