Intrinsic value is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.
 | | | Intrinsic Value | | The intrinsic value is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value. Additionally, intrinsic value is primarily used in options pricing to indicate the amount an option is in the money. | | | Breaking it Down: | | Value investors who follow fundamental analysis typically look at both qualitative (business model, governance and target market factors) and quantitative... Read More | | | Related to "Intrinsic Value" | | | | | | | Moneyness | | Moneyness is a description of a derivative relating its strike price to the price of its underlying asset. Read More | | | | Relative Value | | Relative value is a method of determining an asset or company's value, which takes into account the value of similar assets or companies. Read More | | | | | Stock Option | | A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date. Read More | | | | Time Decay | | The ratio of the change in an option's price to the decrease in time to expiration. Since options are wasting assets, their value declines over time. Read More | | | | | | | | | | Follow Us: |  |  | | | | | | |
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