What is meant by intrinsic value?

In economics, Intrinsic value is the actual value of something based on the value that that item, investment, or company provides. For example, if a company might be valued at $250M on the stock market due to speculation while their sales would suggest a true, or intrinsic value of $25M. In the case of currency, intrinsic value often refers to the value of the metals used to make that coin vs the face value of that coin.

 

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