Call Dr. Yoo Suh on phone number (321) 434-8420 for more information and advice or to book an appointment.
By Investopedia AAA |. A: There is a significant difference between intrinsic value and market value. Intrinsic value is an estimate of the actual true value of a company. Market value is the value of a company as reflected by the company's stock price.Therefore, market value may be significantly higher or lower than the intrinsic value.y Investopedia AAA |. A: There is a significant difference between intrinsic value and market value. Intrinsic value is an estimate of the actual true value of a company. Market value is the value of a company as reflected by the company's stock price.
For an option, the intrinsic value is the difference between the current share price and the price at which the option can be exercised. To illustrate, suppose a call option has a strike price -- the exercise price -- of $20, and the current share price is $22.