Intrinsic value in financial markets

This paper identifies three 'folk' arguments for an intrinsic value implicit in the finance literature. The 'hindsight' argument states that if financial assets eventually have a value in the form of realised cash flows, then this reveals an intrinsic value that was always there. The 'Goldilocks' argument states that if there are values that are clearly too high and too low, there must be an intrinsic value between the two that is just right. The 'time-will-tell' argument states that however unstable prices may be in the short-run, in the long-run we can infer an intrinsic value beneath them.