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:
“It is not in our drawing-rooms that we should look to judge of the intrinsic worth of any style of dress. The street-car is a truer crucible of its inherent value.”
—Elizabeth Stuart Phelps (1844–1911)