Question

A company's intrinsic value is its:

Select one:

A. Economic value assuming actual payoffs are known

B. Carrying value of debt

C. Stock price

D. Market value

Answer 1

A. Economic value assuming actual payoffs are known

Intrinsic value, also known as fundamental value, refers to an investor's perception of the inherent value of an asset, such as a company, stock, option, or real estate. The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value.