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**Intrinsic Value vs Market Price, what's the difference?**



When trading stocks, have you ever wondered: why do I think a particular stock is worth 100 yuan, but the market prices it at 80 yuan? This is the difference between "Intrinsic Value" and "Market Value."

**Intrinsic Value** = How much money this asset can actually earn. It is calculated by analyzing the company's financial reports, growth potential, and competitiveness using the discounted cash flow method. Simply put, it is the "theoretical price" based on fundamentals.

**Market Value** = How much it can be sold for now. Determined by supply and demand, retail sentiment, and macro environment, it fluctuates daily. This is the real-time "transaction price".

**Key Difference:**
- Intrinsic Value needs to be calculated by yourself, market value can be checked in real time.
- Market sentiment can easily cause prices to deviate from fundamentals (especially in bull/bear markets)
- Intrinsic Value helps you find undervalued assets, while market value tells you the current liquidity.
- Economic cycles, interest rates, and geopolitical factors will widen the gap between the two.

**Core Logic of Investment:** Use Intrinsic Value to find opportunities, use Market Value to assess risk. Intrinsic Value > Market Price = Buying Opportunity; conversely = Be Cautious.

However, calculating intrinsic value is not that simple; it involves many assumptions and uncertainties. If uncertain, it is more reliable to seek help from a professional financial advisor to analyze.
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