Legal Definitions - intrinsic value

Intrinsic value refers to the inherent value of something, without any special features that might alter its market value. For example, the intrinsic value of a silver coin is simply the value of the silver within it.

An example of intrinsic value can be seen in the stock market. If a company's stock is undervalued, meaning its market value is lower than its intrinsic value, investors may see it as a good opportunity to buy the stock at a lower price and hold onto it until the market value increases to match its intrinsic value.