What is Hidden Value?
City Analysts persuasively write about finding Hidden Value in listed companies based on an out-dated definition:
‘existing, under-valued assets not reflected in company balance sheets nor share prices.’
The Hidden Value Partners’ description of Hidden Value is more comprehensive:
‘unshared thoughts, ideas, insights, and opportunities not yet integrated with business purposes,
goals, competitive advantages, strategies, plans, and results.’
Hidden Value is, therefore, undisclosed potential – it is unseen, out of mind, out of sight – and is people’s ‘hidden intelligence’. Paradoxically, though, it is also in plain sight, waiting to appear, to be asked for, understood and recognised as opportunities for change.
By contrast ‘intrinsic value’ is a natural part of every business – it exists and is tangible – the subject of the Analysts’ view. It is perhaps not yet recognised as being important or is under-utilised, forgotten about or not thought of as a priority the last time it was considered.
Hidden Value is current, fresh and contextually new, and exceeds the intrinsic value for its potential to transform businesses.
However, when both hidden and intrinsic value are discovered through our Inquiry methodology, robust business transformation strategies and initiatives are possible.