ATLASIntrinsic value (fair value)
Investing glossary · Valuation and fundamentals
What a business is worth based on the cash it is expected to produce, as opposed to what its shares cost today.
Definition
Intrinsic value, also called fair value, is an estimate of what a company is worth based on the cash it is expected to generate for its owners over time. It is an answer to the question "what would a patient buyer pay for this business if there were no market mood at all?"
The market price is what people pay today; intrinsic value is what the business arguably deserves. The gap between the two is the whole point: a stock trading far below its fair value may be cheap, one trading far above may be expensive. But fair value is always an estimate with a range, not a fact, and a stock can stay "mispriced" for years.
Formula
Intrinsic value = Σ FCFₜ / (1 + r)ᵗ + TV / (1 + r)ⁿ
FCFₜ = expected free cash flow in year t, r = discount rate (the return you demand), TV = terminal value after the last forecast year, n = number of forecast years.
Worked example
ATLAS estimates that Apple (AAPL) has a fair value of about $209.45 per share, with a reasonable range of $136.36 to $232.92. The stock trades at $346.86, which is 66% above fair value. The estimate was last updated on Oct 26, 2026.
Read it as a range, not a single number: the further the price sits outside the range, the stronger the signal, and even then it says nothing about when the gap will close.
How ATLAS uses it
ATLAS combines a discounted cash-flow model with the valuation multiples of comparable companies and shows the result as a fair value, a reasonable range and a confidence level on every stock page.
Related in ATLAS: Valuation and targets →Browse all ATLAS tools →See it on a real stock
The example above uses these companies. Open their pages for the full numbers:
Frequently asked questions
Is intrinsic value the same as fair value?
In everyday use, yes. Both mean an estimate of what a business is worth from its fundamentals, as opposed to its current market price. Some analysts use "fair value" for the output of a specific model and "intrinsic value" for the broader idea.
Does a stock below its fair value always go up?
No. Fair value is an estimate, the market can disagree for a long time, and the business itself can change. A discount to fair value is a reason to look closer, not a guarantee.
Related terms
Put the idea to work on your own stocks
Open any company in ATLAS to see its fair value, its odds of rising and its risk numbers side by side.
Try ATLAS →Not investment advice. ATLAS estimates are produced by statistical models from public data; they can be wrong and past performance does not predict future results. Consider your own situation before investing. Disclaimer