Which of the following is true for intrinsic values?
A)It is the present value of future expected cash flows.
B)It is unaffected by changes in interest rates.
C)It must be below current market price for a stock purchase to be acceptable.
D)It is the undiscounted value of the cash that can be taken out of a business during its remaining life.

Question

Quizplus · Accepted Answer

Intrinsic value is indeed the present value of the future expected cash flows of an asset, reflecting its true underlying value based on its fundamentals.

Which of the Following Is True for Intrinsic Values