Intrinsic Value (finance)
In finance, intrinsic value refers to the value of a security which is intrinsic to or contained in the security itself. It is also frequently called fundamental value. It is ordinarily calculated by summing the future income generated by the asset, and discounting it to the present value. Simply put, it is the actual value of a security as opposed to the market or book value.
Read more about Intrinsic Value (finance): Options, Equity, Real Estate
Famous quotes containing the word intrinsic:
“To have that sense of one’s intrinsic worth which constitutes self-respect is potentially to have everything: the ability to discriminate, to love and to remain indifferent. To lack it is to be locked within oneself, paradoxically incapable of either love or indifference.”
—Joan Didion (b. 1934)