The answer is true. A measurement of an asset's value is its intrinsic value. By using an intricate financial model or an objective computation, this measure is determined.
An asset's intrinsic worth is distinct from its current market value. Calculate each and every future cash flow for a corporation. Determine the current value of every one of these upcoming cash flows. The financial value of the stock is calculated by adding the present values. Based on the value of comparable businesses, the technique gives the business a measurable value. For instance, if company A trades at a 10x P/E ratio and company B earns Rs. 2 per share.
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