Intrinsic Value

The perceived true value of an asset based on fundamentals, not market price.

Intrinsic value is what an asset is actually worth based on an objective analysis of its fundamentals: cash flows, assets, growth prospects. It differs from market price, which reflects supply and demand. Value investors buy assets when they trade below intrinsic value, seeking a margin of safety.

Believing the stock's intrinsic value far exceeded its price, the value investor bought aggressively.