Intrinsic value
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Intrinsic value (alternatively known as fundamental value), P^0, is the present value of a firm's expected future free cash flows.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Intrinsic value (fundamental value), P^0. The present value of a firm's expected future free cash flows.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
