You calculate the intrinsic value of the company by projecting how much real cash it can produce over its useful lifespan. Then you calculate the current value

You calculate the intrinsic value of the company by projecting how much real cash it can produce over its useful lifespan. Then you calculate the current value of that future money (you have a target rate of return you want to meet or exceed). That gives you a fair price per share right now. It's a pretty standard Benjamin Graham valuation method.