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Lewie said: "Calculating intrinsic value would be quite a strong tale of a companies health? Since it essentially represents profitability"

There are many ways to calculate intrinsic value but simply put "it reflects the actual worth of the business", the amount of money that can be crystalised if the whole business & all of its assets are sold off today & is not reflective of a share price evaluation. Most believe a stock's value is indicated by its share price but that only tells you a company's current value or its market value. The share price represents an agreed value of a buyer & a seller, nothing more & nothing less. If there are more buyers than sellers, the share price will climb & when there are more sellers than buyers the share price will fall. When this is in play the intrinsic value of a company becomes less relevant. Some revert to using other ways to value a company & one common way is to use a crude measure of a "Price/Earnings ratio" (P/E). I say "each to their own"

Focusing on valuations is the time-tested path to lousy returns

Valuations using the price/earnings ratios or other valuation metrics as in using "intrinsic value" in my opinion is terrible at timing the direction of the markets, in particular, early in the formation of a trend. Concentrating on valuations routinely misses the major moves in a bull market, but has merit investing over the long haul. Personally I want to trade the price differentials of a share price along the way.

Price/earnings ratio (P/E)

For those who are unfamiliar with a Price/Earnings ratio (P/E), it's simply a valuation metrics which divides a stock’s price by its per-share earnings. (P/E) is a measure to gauge if a company is under or overvalued. When stocks are perceived as under or overvalued, it's comparing the stock price to the companies’ underlying business values.

Some P/Es use past earnings 

Others utilise projected future earnings or other valuation metrics, for example, some will use, “price to book” which in theory is what's left when a firm liquidates & repays all liabilities. While other valuations compare prices to sales of unlocked opportunities while others value in the short-term.

Market direction

I'm suggesting that you ignore all of these metrics for market direction as they simply don’t help. The recent COVID-19 price plunge didn’t happen because valuations were too high, or because the economy was shaky, it was all to do with market sentiment, the sentiment of the herd & nothing else.

Skate.