Some factors that determine the intrinsic value of a stock.

If you think about it, a company consists of its net assets that work together for it to make and sell products.

But the value of a company and its stock doesn’t stop at the simple maths of valuing its net assets. The analysis extends to include several other factors and variables:

1⃣The current and expected future value of the net assets in the company
2⃣The number of earnings those assets have generated and will continue to generate.
3⃣The level and amount of dividend distribution by the company.
4⃣Current and potential competition.
5⃣Changes in technology, consumer demography and tastes.
6⃣Government policies

Some of these are factual but most of them are subjective and based on individual expectations.
This invariably means that the value of a stock would differ to each person based on their assumptions and the information they have access to.

However, if done properly should lie within a decent range of the company/stocks intrinsic value.
The list is not exhaustive, so what other variables do you think are important in determining the value of a stock?

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