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:
“Three elements go to make up an idea. The first is its intrinsic quality as a feeling. The second is the energy with which it affects other ideas, an energy which is infinite in the here-and-nowness of immediate sensation, finite and relative in the recency of the past. The third element is the tendency of an idea to bring along other ideas with it.”
—Charles Sanders Peirce (1839–1914)