Intrinsic value is something of a misnomer; in reality it simply means: I've done some sort of analysis, looked at the future cash flows, and discounted them back to the present at some rate. In reality there is nothing intrinsic about it; your valuation is your opinion about the future based on a multitude of assumptions, nothing more.
But even if your valuation is remarkably different than the public markets it does not then follow that you should short; this ignores the importance of time in making a good investment decision. This is compounded by the fact that shorts and options are incredibly effective means of losing lots of money in a short amount of time.
But even if your valuation is remarkably different than the public markets it does not then follow that you should short; this ignores the importance of time in making a good investment decision. This is compounded by the fact that shorts and options are incredibly effective means of losing lots of money in a short amount of time.