"Intrinsic Value" of a Company

After we have determined that a company is Stable, Understandable, Predictable,  and can manage debt well, how exactly do we figure out how much the company is worth? In other words, how do we calculate the Intrinsic Value of a business?

You should also have some understanding of bonds before attempting these calculations.

The idea is basically to judge how much of the Earnings (EPS) translates into Book Value growth and Dividend payout over future years (taking into consideration the amount of debt to pay off, future economic characteristic of the sector...etc), this is your expected gain. 

On the other hand you have the expected gain of a fixed cash type investment (bonds or bank accounts that has negligible risk).

You can then compare the two and work out for the same amount of money, how cheap the stock has to be in order to give you the same or better returns than the fixed dollar alternative- to make it worth while to invest in stocks rather than bonds.

Note: Notice that this calculation will change with the bank interst rate. If you can get a guaranteed higher % return from bonds or bank accounts elsewhere, then the stock in the same business needs to be even cheaper to give you comparible returns for the same amount of money invested.