A measure of an asset's intrinsic value is its value. Rather than using the asset's current market price, this metric is derived from an objective formula or a complicated financial model. It is not based on market price. It is used in financial analysis to describe determining, to the best of one's ability, the underlying value of a firm and its cash flow. When options are priced, this term refers to the difference between the strike price of the option and the current price of the underlying asset. There are many ways in which intrinsic value can be applied in a variety of fields. An analyst who uses fundamental and technical analysis to assess an asset's intrinsic value is known as a financial analyst.

Intrinsic value is the worth of an object based on its utility. It's what makes an object valuable in itself, not because it can be traded for other goods or valuables. Intrinsic value is something that cannot be mass produced or replicated. Whether it be a rare antique, a home, or a rare painting, the intrinsic value of each is different due to their uniqueness and rarity.

Intrinsic value is the worth of something based on its own merit, rather than what it can be exchanged for. One way to tell whether or not something has intrinsic value is to see if it will yield a positive return even if no money changes hands.