Intrinsic value doesn’t seem like it can be intrinsic if it uses extrinsic inputs like risk free rate and equity risk premium. This all seems influenced by human social practices and rituals, and that is okay. Have been wondering about this lately.
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Replying to @LAForeverHall
The value of the asset to you depends on your discount rate. The value of the asset to the market depends on the market's discount rate. So your intrinsic value can differ meaningfully from the market's intrinsic value.
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Replying to @PythiaR
None of this is intrinsic to the asset; it is extrinsic because the source is from the buyers and sellers of the asset. I can accept calling it extrinsic value which sounds like what you describe.
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Replying to @LAForeverHall
By that definition intrinsic value is impossible. The concept of "worth" depends on the person. Technically life has no intrinsic value because the value depends on the individual.
1 reply 1 retweet 7 likes
I think I can agree with both of those statements.
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