Case Study, Fundamental

Intrinsic Valuation Limitations

Paul Beland, Head of Equity Research
14 November 2023


Intrinsic valuation analysis is a crucial tool for an analyst, but it has limitations when used as the sole method. One of the most significant weaknesses of intrinsic valuation is the complex and highly sensitive inputs it requires, as well as its lack of external market-driving factor analysis.

Although valuation is sometimes referred to as more of an art than a science, it is ultimately grounded in the fundamental principle that an asset's value is the present value of its future cash flows. Intrinsic valuation is a method that links the value of an asset to its ability to generate cash flows and the risk associated with those cash flows.


Paul Beland, CFA
Head of Equity Research
Paul Beland, who holds a CFA designation, is currently serving as the Head of Equity Research at CFRA. Before joining CFRA in 2017, he worked as a sell-side equity research analyst for over ten years with Citigroup and Lazard Capital Markets in New York City. During his tenure, he covered various sectors, including Accounting and Valuation, Education Services, and Media. He completed his Bachelor of Arts in Economics with honors and distinction from the University of North Carolina at Chapel Hill. Additionally, he is a CFA charterholder.

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