Intrinsic Value - A key to value investing

https://blog.elearnmarkets.com/how-to-calculate-intrinsic-value/

There is a bit of concern regarding the calculation of intrinsic value about its subjective nature despite the huge popularity. Different people come out with different intrinsic value for the same stock. Anyways the calculation of intrinsic value helps in determining the attractiveness of a stock.

Just like Warren Buffet said that he uses the following criteria to invest in stocks-

a. Business which he understands
b. Run by competent and able management.
c. With long-term focus
d. Attractively priced

He further adds

We usually can identify a small number of potential investments meeting requirements (1), (2) and (3), but (4) often prevents action.

However, many a time when a business passes all tests, it’s better to avoid the stock if the valuations are not attractive as compared to its intrinsic value.