Concept: Intrinsic Value Surpass
You have derived an Intrinsic Value of a stock.
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But what Margin Of Safety would you apply has hesitated your last mile decision making.
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As a value investor, everybody wish to get to a maximum MOS 99%.
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In fact, assigning any random constant number as MOS is not scientific, not fundamental and impractical.
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I would like to introduce a concept called Intrinsic Value Surpass.
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1.
Intrinsic Value Surpass Concept:
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The Total Assests is viewed as a Total Reinvested Business Capital.
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Intrinsic Value Surpass
= Intrinsic Value - Total Reinvested Business Capital
= Intrinsic Value - Total Assets
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2.
If your favorite stock is mispriced at the Intrinsic Value Surpass, it’s absolutely a good bargain inside MOS radius.
