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Intrinsic Value
Depending on how you want to examine a company? {hidden things like goodwill, name brand,,,) - A simple view, it is the value in todays dollars, of the future earnings of the company. IOW, how much you would put in a savings account today at a specific interest rate to give you the same return as the earnings.

The interest rate to use and the forecast of earnings, even which earnings to use are different for different folks but the basic idea is to divide the forecasted earnings by the interest rate.

For example: if a company has earnings of $3.00 per share and you beleive 6% is a good interest then you would divide 3/.06 = $50/Share


The Invested Capital is the sum of the companies equity and long term debt. The total amount of money that is "invested" in the company.
This is also called the Capitalization.

So for example in our previous example, lets say the market price of the stock above is $60/share and there is $20/share of debt, the invested capital is $80/share. To get the total multiply by the shares.

DrTarr
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