Market Value for Stocks

  • The market value of a security is what anyone is willing to pay for it in the open market. Depending on broader market conditions and the popular opinion of investors at any given time, a company's market value can either be much higher or lower than its fundamental and intrinsic value.

Intrinsic Value for Stocks

  • Intrinsic value is a somewhat more nebulous, subjective term than market value. It typically refers to the value of a company's intellectual property like copyrights, trademarks and patents or other intangible things like business models, personal contacts and complex proprietary technology that may be difficult to properly value in the open market.