ELI5: Explain Like I'm 5

Intrinsic value (finance)

Intrinsic value is a way of estimating how valuable something is. In finance, it's used to determine how much a stock (part of a company) is worth. The value is determined by looking at factors like the company's earnings, profits, and future growth potential. It can also take into account the overall health of the company's industry. People use this number to decide if a stock is worth buying or selling.