The purpose of this paper is to develop two different models for intrinsic value measurement, Vst and Vct, by extending Residual Income Model (Feltham and Ohison 1995), and present empirical evidence on the validity of these models. The Vstincludes both conservatism and other market factors of synergy effect as the nature of goodwill, whereas the Vct confines the nature of goodwill only to conservatism. The results of empirical analysis for 504 firm-year observations show that the average Vst is substantially lower than the average Vct. These results are caused by the downward bias of Vst measured by overestimated cost of capital. The results of additionalanalysis using stock price, Pt, instead of Vst, as a proxy of intrinsic value, are exactly consistent with my hypothesis. The average Pt is 34.2% higher than the average Vct. These results imply that a firm's intrinsic value that includes both conservatism and other market factors of synergy effect as the source of goodwill, Vst or Pt, is higher than its intrinsic value that confines the source of goodwill only to conservatism, Vct. My empirical results also provide some practical ideas to accounting standard setters on the necessity of different accounting treatments for goodwill according to its nature.