Intrinsic Value

Is a way to describe what a resource or instrument is worth and has of real values. It is a term often used by investors who analyze companies through fundamental and technical terms. This is to see if there are any underlying values ​​in the company / instrument.

When looking for a real / intrinsic value, you must identify the underlying values ​​that the company in question holds. Underlying values ​​can be;

Physical objects with an underlying value (construction, raw materials, technology, etc.)
Revenue
Resources in the company
Contracts entered into by the company
Ownership of land
Key personnel

There are several models for calculating intrinsic value, but you can easily get started using the underlying values ​​above, as well as other values ​​you thought it was logical to include as a basis for calculations.

When it comes to the intrinsic value of options, you look at the difference between the "strike price" and the current price of the underlying instrument. This is to see if the option is OTM (out of the money), ATM (at the money) or ITM (in the money). Which in turn says something about the option pr. today actually has a real value. You can find more about this in the options tabs.