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What does Intrinsic Value mean in financial terms?

What does Intrinsic Value mean in financial terms?

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Intrinsic value in financial terms means what an asset is worth. This asset may be a stock, any security, an investment vehicle, or any physical asset associated with future cash-flows.

The intrinsic value independently of the current market value of the asset, by discounting the future benefits (cash-flows) associated with the asset to present value using a suitable discount rate. In short, the intrinsic value is the net present value of all the future net cash-flows associated with the asset.

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