◈ GLOSSARY · INVESTING
Intrinsic Value.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
Intrinsic value is what a business is actually worth based on the cash it can produce over its lifetime, discounted back to today. It's the number value investors try to estimate so they can compare it to the market price. Two thoughtful analysts will get two different answers — intrinsic value is a range, not a precise figure.
◈ IN PRACTICE
Example
Suppose you estimate a company will generate $10 of owner earnings per share for the next decade, growing modestly, and you discount at 9%. You might land on an intrinsic value range of $120-$150 per share. If the stock trades at $80, that's the margin of safety Graham talked about.
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