What a company is worth? INTRINSIC VALUE is based on future dividends. In other words, companies pay a certain amount to their investors every year based on how many shares they own. And this is the value of all future dividends going into the future. Future Value / Discount Rate = Total dividends per year / DR BOOK VALUE is the value of the company is we split it up into pieces and sold those individual pieces. Total assets (ignoring intangible assets) minus liabilities MARKET CAPITALIZATON is the value the market is placing on the company. No shares * price Many stock trading strategies look for deviations between intrinsic value and market cap.