intrinsic value

intrinsic value definition - business

intrinsic value

The value of an asset as justified by the facts. For example, the intrinsic value of a security is justified by factors such as the issuing company's assets, dividends, earnings, and management quality. Intrinsic value is at the core of fundamental analysis, since it is used in an attempt to calculate the value for an asset and then compare it with the market price.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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