One way to approach investing is to compare a company's market price with its estimated intrinsic value. If a business is worth around ₹1,000 per share based on its earnings potential, cash flows and growth prospects, buying it at ₹700–800 provides a margin of safety. On the other hand, buying the same business at ₹1,500 leaves little room for error. The focus is not on finding the cheapest stock but finding a good business available at a reasonable discount to its estimated value. Intrinsic value is not an exact number and different investors may arrive at different estimates. That is why assumptions about growth, profitability and industry outlook are equally important. A great company can be a poor investment if bought at an excessively high valuation, while a good entry price can significantly improve long-term returns.