Despite its very basic and optimistic in its assumptions, the Gordon Growth model has its merits when applied to the analysis of blue-chip companies and broad indices. The discount rate divided into the earnings provides an estimate of capitalized value with the assumption that the earnings remain constant into perpetuity. Read this article on How to Become a Value Investor. Think of it as the "true" or "inherent" value of an asset as opposed to its "market" value what the public decides to pay for it.
What is 'Intrinsic Value'
2 kg 7 pounds) than the placebo group (4. 1 kg 9 pounds). The researchers also looked at body fat percentage. The placebo group lost 2.