The intrinsic value is the book value of assets minus liabilities. This method is not based on the future, and does not provide an indication regarding the profitability of the enterprise. Also, matters that are not recorded in the balance sheet are not taken into account, such as for example knowledge, clients, or lease contracts. This method does not take the risks of the enterprise into account either. An important disadvantage is furthermore that with this method, the value of the enterprise is based on accounting guidelines and choices, as if apart from the profit the value of the enterprise can be directed with this as well.