f the three intrinsic value estimates for Stock X were different, you would have the most...

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f the three intrinsic value estimates for Stock X weredifferent, you would have the most confidence in Company X's CFO'sestimate. Intrinsic values are strictly estimates, and differentanalysts with different data and different views of the future willform different estimates of the intrinsic value for any givenstock. However, a firm's managers have the best information aboutthe company's future prospects, so managers' estimates of intrinsicvalue are generally better than the estimates of outsideinvestors.

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Ans It is not necessary that management estimates are better than outside investors as Managers use the most optimistic scenario in valuing the intrinsic value including higher sales growth low costs as of sales See Answer

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f the three intrinsic value estimates for Stock X weredifferent, you would have the most confidence in Company X's CFO'sestimate. Intrinsic values are strictly estimates, and differentanalysts with different data and different views of the future willform different estimates of the intrinsic value for any givenstock. However, a firm's managers have the best information aboutthe company's future prospects, so managers' estimates of intrinsicvalue are generally better than the estimates of outsideinvestors.