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Intrinsic Value
Term category: Stocks
In 10 words or less:  The true underlying value of a security, such as a stock.

Definition: This is a hypothetical "real value" of a company that's calculated by considering the value of a company's future cash flows.

StockJargon Advice: People who calculate the intrinsic value of a company consider it to be the "real value" of a company. This is the idea that the price you see is not the real value of the stock. If the intrinsic value is higher than what the stock is quoted at, the stock is considered undervalued. And vice versa.

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