Ask the Fool Intrinsic vs. Market Value

Q: What's the difference between intrinsic value and market value? - C.B., Farmington, N.M. A: That's a critical concept for investors to understand. Imagine Acme Explosives Co. (ticker: KBOOM). Its intrinsic value is what it's really worth based on its assets and debt, its anticipated growth rate, and, ultimately, the amount of cash it's expect