|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 asset's discounted future income 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 its intrinsic value, as they watched it plummet drastically only a few short years later. It should be noted that the "Free Cash Flow" valuation model is used on the site for the intrinsic value calculation.