Intrinsic Value Formula

Fx Copy
LaTeX Copy
Intrinsic Value refers to the fundamental value of an asset, independent of its market price. Check FAQs
ITV=SP-BSV
ITV - Intrinsic Value?SP - Share Price?BSV - Base Value?

Intrinsic Value Example

With values
With units
Only example

Here is how the Intrinsic Value equation looks like with Values.

Here is how the Intrinsic Value equation looks like with Units.

Here is how the Intrinsic Value equation looks like.

1.6Edit=1.85Edit-0.25Edit
You are here -
HomeIcon Home » Category Financial » Category Investment » Category Forex Management » fx Intrinsic Value

Intrinsic Value Solution

Follow our step by step solution on how to calculate Intrinsic Value?

FIRST Step Consider the formula
ITV=SP-BSV
Next Step Substitute values of Variables
ITV=1.85-0.25
Next Step Prepare to Evaluate
ITV=1.85-0.25
LAST Step Evaluate
ITV=1.6

Intrinsic Value Formula Elements

Variables
Intrinsic Value
Intrinsic Value refers to the fundamental value of an asset, independent of its market price.
Symbol: ITV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Share Price
Share Price refers to the current market price at which a single share of a company's stock is being traded on a stock exchange.
Symbol: SP
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Base Value
Base Value refers to the principal amount or face value of the instrument.
Symbol: BSV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Forex Management category

​Go Cumulative Distribution One
D1=ln(PcK)+(Rf+vus22)tsvusts
​Go Cumulative Distribution Two
D2=D1-vusts
​Go Black-Scholes-Merton Option Pricing Model for Call Option
C=PcPnormal(D1)-(Kexp(-Rfts))Pnormal(D2)
​Go Black-Scholes-Merton Option Pricing Model for Put Option
P=Kexp(-Rfts)(-D2)-Pc(-D1)

How to Evaluate Intrinsic Value?

Intrinsic Value evaluator uses Intrinsic Value = Share Price-Base Value to evaluate the Intrinsic Value, Intrinsic Value formula is the actual worth of the asset based on its underlying characteristics, earnings potential, cash flows, and other relevant factors. Intrinsic Value is denoted by ITV symbol.

How to evaluate Intrinsic Value using this online evaluator? To use this online evaluator for Intrinsic Value, enter Share Price (SP) & Base Value (BSV) and hit the calculate button.

FAQs on Intrinsic Value

What is the formula to find Intrinsic Value?
The formula of Intrinsic Value is expressed as Intrinsic Value = Share Price-Base Value. Here is an example- 1.6 = 1.85-0.25.
How to calculate Intrinsic Value?
With Share Price (SP) & Base Value (BSV) we can find Intrinsic Value using the formula - Intrinsic Value = Share Price-Base Value.
Copied!