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Why do Investors and Companies Care about Intrinsic Value? please use your own words do not...

Why do Investors and Companies Care about Intrinsic Value? please use your own words do not copy and paste for I can do that myself

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Intrinsic is the true value of a company based on the cash flows of the company. By projecting the financial performance, an intrinsic value is obtained that determines the worth of the company. It can be taken as a reference to determine how the market price is actually in comparison to the intrinsic value. If the market price is higher it is overvalued and if lower, then undervalued. So investors and companies are interest to determine the valuation and understand if it possesses any investment opportunity to them.

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