Intrinsic Value, Market Value, and the Search for Information

This chapter deals with the financial analysts’ assumption that companies have a so-called intrinsic value that can be identified and is partly reflected in the stock price. It highlights the role the search for new information plays in the endeavor to define such intrinsic value. In explaining how analysts frame, select, and weight information, it shows that, rather than being a straightforward activity, financial analysis is heavily influenced by what analysts perceive to be valuable information.

Actuarial science · Business · Economics · Financial economics · Frame (networking) · Geography · Intrinsic value (animal ethics) · Microeconomics · Political science · Stock market · Value (mathematics) · Auditing, Earnings Management, Governance · Computer Science · Financial Markets and Investment Strategies · Forecasting Techniques and Applications