Intrinsic Value is a stock’s actual worth, calculated using assets, cash flows, and fundamentals.
The intrinsic value is the actual value or the real worth of the stock/company that is derived based on fundamental and technical analysis of the company.
The intrinsic value is different from the market value. The market value is the value of the stock/company the investors are willing to pay. Whereas the intrinsic value is the actual value based on its assets, risks, projected cash flows, financials, etc.
When the market value is more than the intrinsic value, the stock is said to be overpriced, whereas when the market value is less than the intrinsic value, it is said to be underpriced.
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