What is Intrinsic Value?
Intrinsic value, also known as unascertainable value or fundamental value, is a measure of the worth of an asset independent of market fluctuations. It’s the potential long-term value of that asset based on its competitive advantage, unique features, and other positive factors. Intrinsic value investors focus on assets with strong fundamental values that are undervalued by the market. Investors who follow this strategy have some similarities to growth investors, but they look for different things when analysing a company and its stock. Both strategies can be successful in the right circumstances.