Intrinsic Value

Definition of 'Intrinsic Value'

Value of a company based on an underlying perception or calculation of corporate value. Intrinsic value includes such hidden assets as brand-name recognition, management expertise or hard assets carried on the balance sheet at a cost significantly below their market value.

The stock price may be compared to this intrinsic value, and the investor may perceive an undervalued company despite full valuation on traditional ratios.