Valuation is the technique of assessing the present value of an asset or a company; many methods can be used to determine value. The company’s management, the composition of its capital structure and/or the prospect of future earnings and market value of assets can be all assessed inter alia.
Buyers and sellers establish the market value of a stock or bond all the time on an exchange. The concept of intrinsic value, though, is the perceived value of a security based on future earnings or some different facet unrelated to the market price of a security. A change in those earnings compared to the market price or a change in the market price will both act to change the valuation of a security.