I hate definitions that make something harder to understand than it should be.
Intrinsic value is a technical term that seems a little overwhelming to the novice investor when it doesn’t have to be.
In the simplest explanation, intrinsic value is the price tag placed on a company or asset based on it’s underlying value.
There is NO simple equation for this number it is simply an estimate. Think like a business owner an estimate how much you are willing to pay in order to buy the entire company.
You will predominantly see intrinsic value compared to a stock’s current market value (The current price of shares in the stock market).