What is 'Intrinsic Value'?

Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ from its market value.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Intrinsic Value Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, using fundamental analysis. Also called the true value, the intrinsic value may or may not be the same as the current market value. Additionally, intrinsic value is also used in options pricing to indicate the amount that an option is "in the money." Term Of The Day Selected By Philip H. Weiss Principal Apprise Wealth Management LLC Phoenix, MD https://www.apprisewealth.com/ Breaking it Down: Intrinsic value can be calculated by value investors using fundamental analysis to look at... Read More Related to "Intrinsic Value" Intrinsic Value vs Current Market Value Discover the differences between intrinsic and market values, what makes the former difficult to determine, and how investor demand affects the latter. Read More How to choose the best stock valuation method There are many valuation methods available to investors, each with unique characteristics. Here, we'll explore the most common valuation methods – and when to use them. Read More How Are Book Value and Intrinsic Value Different? Book value and intrinsic value are two ways to measure the value of a company. Find out which is known as the true value from an investment standpoint. Read More Related Definitions Fundamental Analysis Fundamental analysis is the method of analyzing a security to measure its intrinsic value. Read More Discounted Cash Flow (DCF) Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. Read More In The Money (ITM) In the money means an option has intrinsic value, which is determined by the proximity of the strike price relative to the price of the underlying asset. Read More Strike Price Strike price is the price at which the underlying asset of a derivative can be bought or sold at. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: