Intrinsic Value
When talking about the company, intrinsic value is the real value of the company, the total amount of both tangible and intangible assets. Intrinsic value is almost always different than the market value of the company due to factors that are not easily calculated (brand name, know-how, trademarks).
When talking about options, in the case of call option, intrinsic value is the difference between underlying stock’s price and the strike price of the option, and in the case of put option, intrinsic value is the difference between strike price of the option and the price of an underlying stock.
| Related Terms: Technical Analysis Fundamental Analysis Time Value Value Investing Value Stock |