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:
“Wherever there are walls I shall inscribe this eternal accusation against Christianity upon them—I can write in letters which make even the blind see ... I call Christianity the one great curse, the one great intrinsic depravity, the one great instinct for revenge for which no expedient is sufficiently poisonous, secret, subterranean, petty—I call it the one immortal blemish of mankind....”
—Friedrich Nietzsche (1844–1900)