| The intrinsic value is the actual value of a security, as opposed to its market price or book value. It is ordinarily calculated by summing the discounted future income generated by the asset to obtain the present value. Is the intrinsic value of the stock you are buying lower than the price? Early purchasers of Netscape stock were treated to a harsh lesson in the stock's intrinsic value, as they watched it plummet drastically only a few short years later. |
