YouTube video by Ndubuisi 'Andy' Egwim (uploaded Apr 28, 2025) explaining stock valuation and the difference between price and intrinsic value. The speaker uses an example of a specialist hospital being bid at $50 million to show that market price (set by buyers/sellers) can differ from underlying value; he describes the market as a "voting machine, not a weighing machine."
Thankfully, when we started valuing stocks you had to do this thing manually. Thankfully, you can get all these things online, you can actually get the numbers laid out for you. But if you understand the principles, then when you see the number you can make sense of it. So this company, this Mary Jane specialist hospital might be out there and there might be people willing to pay 50 million for it. That's the cost. There might be people happy to pay 50 million for it. 10 people, 20 people. This is venture capitalists. They've come in with a lot of money from the US. They want to pay 50 million for it. But that is just the price. That is the price. The price is not the value. The price is determined by the market. The market is a voting machine, not a weighing machine. The market is just determining. This is the price of this stock, not necessarily the value. Does that make sense.
