Brigham & Ehrhardt (2022) postulate that managers need to know how their decisions affect the price of their stocks and the company. Managers should know the right decision to make if a stock is overvalued. For example, a company should consider issuing new shares if its stock is undervalued. Investors and companies want to reap a surplus on their investments, so understanding and accurately using intrinsic value can be advantageous. A value investor searches for assets with a market price far below the investor's perceived intrinsic value. What should be the margin of safety if the discount amount is below the fundamental or intrinsic value?