A company’s Intrinsic Value Gap™ (IVG) is a measure of how undervalued or overvalued a company is at a point in time. To calculate the Intrinsic Value Gap™ for a company, we take the difference between its trading price and our estimate of intrinsic value to calculate it’s upside or downside potential.
For example, the chart below shows that Google had a positive IVG from 2010 to 2019. In October of 2020 the IVG was -22.6%, the potential downside for the stock.
Each week we perform 20,000 valuations, over 20 million since our founding, to understand every stock’s intrinsic value and IVG to identify our portfolio’s best investment opportunities.
Contact us to receive an Intrinsic Value Gap™ analysis of stocks in your client portfolios to liquidate potential torpedoes