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:
“The truth is that literature, particularly fiction, is not the pure medium we sometimes assume it to be. Response to it is affected by things other than its own intrinsic quality; by a curiosity or lack of it about the people it deals with, their outlook, their way of life.”
—Vance Palmer (1885–1959)