Intrinsic Worth

Intrinsic Worth (or Intrinsic Value) is the true underlying value of an asset, determined through fundamental analysis rather than its current market price. For stocks, intrinsic value is typically estimated using discounted cash flow (DCF) models, which project future earnings and discount them back to the present at an appropriate rate. When a stock's market price is below its intrinsic value, it is considered undervalued and may represent a buying opportunity—a principle central to value investing, as popularised by Warren Buffett and Benjamin Graham.