What is the 'Intrinsic Value'
The intrinsic value is 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. Value investors use a variety of analytical techniques in order to estimate the intrinsic value of securities in hopes of finding investments where the true value of the investment exceeds its current market value.
2. For call options, this is the difference between the underlying stock's price and the strike price. For put options, it is the difference between the strike price and the underlying stock's price. In the case of both puts and calls, if the respective difference value is negative, the intrinsic value is given as zero.
BREAKING DOWN 'Intrinsic Value'
1. For example, value investors that follow fundamental analysis look at both qualitative (business model, governance, target market factors etc.) and quantitative (ratios, financial statement analysis, etc.) aspects of a business to see if the business is currently out of favor with the market and is really worth much more than its current valuation.
2. Intrinsic value in options is the inthemoney portion of the option's premium. For example, If a call options strike price is $15 and the underlying stock's market price is at $25, then the intrinsic value of the call option is $10. An option is usually never worth less than what an option holder can receive if the option is exercised.

Time Value
The portion of an option's premium that is attributable to the ... 
LargeValue Stock
A type of largecap stock investment where the intrinsic value ... 
Extrinsic Value
The difference between an option's market price and its intrinsic ... 
Value Investing
The strategy of selecting stocks that trade for less than their ... 
At The Money
A situation where an option's strike price is identical to the ... 
Out Of The Money  OTM
A call option with a strike price that is higher than the market ...

Options & Futures
Options Pricing: Intrinsic Value And Time Value
The two components of an option premium are the intrinsic value and the time value. The intrinsic value is the difference between the underlying's price and the strike price. Specifically, the ... 
Investing Basics
What Is The Intrinsic Value Of A Stock?
Intrinsic value can be subjective and difficult to estimate. It’s a perception of a security’s value that factors tangible and intangible factors. 
Professionals
European vs. American Options and Moneyness
CFA Level 1  European Vs. American Options and Moneyness. Differentiates European and American options and contrasts the concepts of instrinic and time value. Also discusses the moneyness of ... 
Options & Futures
What Is Option Moneyness?
Get the basics under your cap before you get into the game. 
Professionals
Option Prices and the Time to Expiration
CFA Level 1  Option Prices and the Time to Expiration. Learn how to find the time value of an option. Discusses the relationship between the time value of an option and its time to maturity. 
Professionals
Option Valuation
Learn how to value options. 
Investing Basics
What Is The Intrinsic Value Of A Stock?
Intrinsic value reduces the subjective perception of a stock's value by analyzing its fundamentals. 
Term
What Drives An Option's Price?
The primary drivers of an option’s price are the underlying stock’s current price, the option’s intrinsic value, its time to expiration and volatility. 
Fundamental Analysis
Intrinsic Value
Learn more about this way of valuing a company or an asset based on an underlying perception of its true value. 
Professionals
Intrinsic Value And Time Value
An option’s total premium is comprised of intrinsic value and time value. An option’s intrinsic value is equal to the amount the option is in the money. Time value is the amount by ...

What role does intrinsic value play in put options?
See why the concept of intrinsic value is so important in options trading and how investors use it to evaluate the worth ... Read Answer >> 
What role does intrinsic value play in call options?
Understand why the concept of intrinsic value is important for options traders and how they can use it to estimate what a ... Read Answer >> 
Do you always have to consider intrinsic value when purchasing a stock? Why or why ...
Take a deeper look at why value investors consider a stock's intrinsic value an important consideration before picking a ... Read Answer >> 
What is the difference between intrinsic value and current market value?
Discover the differences between intrinsic and market values, what makes the former difficult to determine and how investor ... Read Answer >> 
What happens when a security reaches its strike price?
Learn more about the moneyness of stock options and what happens when the underlying security's price reaches the option ... Read Answer >> 
When is a call option considered to be "in the money"?
Learn about call options, their intrinsic values and why a call option is in the money when the underlying stock price is ... Read Answer >>