Intrinsic values are calculated for a very important reason—they identify under-priced stocks

Intrinsic value is the true value determined using the companies cash flow. The most purest form to determine intrinsic value is Discounted cash flow (DCF) analysis. Usually stocks trade above intrinsic value on today's world but back in the 1940s, Benjamin Graham had used this method to find stocks trading below intrinsic value which ended up becoming multibagger stocks. Even in today's market, you may find a handful of stocks below intrinsic value. These could be opportune for investment with a long term time horizon. Work of caution intrinsic value is determined on various assumptions like interest rates, growth projection & terminal value. Investor needs to be mindful while pulling these levers.