Call Dr. Yoo Suh on phone number (321) 434-8420 for more information and advice or to book an appointment.
By Investopedia AAA |. A: There is a significant difference between intrinsic value and market value. Intrinsic value is an estimate of the actual true value of a company. Market value is the value of a company as reflected by the company's stock price.Therefore, market value may be significantly higher or lower than the intrinsic value.y Investopedia AAA |. A: There is a significant difference between intrinsic value and market value. Intrinsic value is an estimate of the actual true value of a company. Market value is the value of a company as reflected by the company's stock price.
The discount rate is assumed to be 10%. Based on my estimate, eBay's current intrinsic value should be around $77 billion in market cap or $61 per share. In comparison, the stock is traded at $67.7 billion in market cap or $54.44 per share at the time of writing (Oct. 3 2014). This means that eBay is currently undervalued. If the company's revenues, net income and free cash flows continue to grow, its intrinsic value will also grow.