Intrinsic or fundamental value of firm and Extrinsic or fair market value
Intrinsic or fundamental value of firm: is the figure determined by an unbiased, qualified professional appraiser and is computed with reference to the company’s free cashflow or dividends.
Extrinsic or fair market value: is the value given by the market; usually by willing buyers and sellers who are under no pressure to relate and all have reasonable knowledge of the significant facts of the situation.
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