What is intrinsic value?

Intrinsic value refers to the inherent worth of an asset, which is determined by fundamental factors rather than market price. In finance, it often pertains to stocks, where intrinsic value is calculated based on a company's financial health, earnings potential, and growth prospects. This concept can also apply to other areas, such as philosophy or ethics, where intrinsic value denotes the value that something has "in itself," independent of external factors or consequences.