Intrinsic value is a key concept for long-term investors who focus on the underlying worth of an asset, rather than its short-term market price fluctuations. By calculating the intrinsic value of a company or asset, investors can determine whether it is undervalued or overvalued by the market. If the market price of an asset is lower than its intrinsic value, it may present a buying opportunity, while an asset priced above its intrinsic value may be considered overvalued.
