S&P 500 · SPY
774.34
▲ +4.70 (+0.61%)
DOW JONES · DIA
511.83
▲ +0.73 (+0.14%)
NASDAQ · QQQ
754.80
▲ +5.22 (+0.70%)
GOLD · GLD
$378.78
▼ -1.36 (-0.36%)
OIL (WTI) · USO
$144.83
▼ -2.54 (-1.72%)
BITCOIN
$85,315.00
▲ +12.10 (+0.01%)
--:--:--
NYSE · Live ET

Intrinsic Value

What is Intrinsic Value?

Intrinsic value is an estimate of what a company is truly worth based on its future cash flows and fundamentals, regardless of its current market price.

Why it matters

Value investors try to buy when the price is below intrinsic value. Because it is an estimate that depends on assumptions, two analysts can reach very different numbers.

Related terms

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General education, not investment, tax or legal advice. Read our disclosures.