Intrinsic Value
“Intrinsic value is an all-important concept that offers the only logical approach to evaluating the relative attractiveness of investments and businesses.”
– Warren Buffett
What is Intrinsic Value?
Intrinsic value represents the true value of a company or asset – based not on market sentiment, but on its ability to generate future cash flows. Many companies are undervalued because traditional valuation methods often overlook the full picture, especially when it comes to intangible assets. Tangible assets like land, buildings, and equipment can depreciate and are easily replicated. In contrast, intangible assets – such as proprietary technology, brand strength, customer relationships, and intellectual property – often provide the unique, sustainable advantages that drive long-term value.
However, these intangible assets are frequently misunderstood or excluded from financial statements. Their contribution to future growth may not yet be reflected in reported profits, leading markets to undervalue companies that are, in reality, well-positioned for future performance. At Intrinsika, we work with clients to identify and assess these hidden value drivers, helping ensure their intrinsic value is understood, protected, and enhanced.
Intrinsic Asset Categories
At Intrinsika, we help clients identify which intangible assets underpin their company’s intrinsic value.
Intrinsic Assets can be categorised in the following categories, shown with some iconic examples*:
Brand
Trade Secrets
Invention
Software
Know How
Data
Relationships
Design
Content
Regulatory
Which assets are relevant to your business?
*The logos shown above are registered trade marks of their respective organisations. Intrinsika makes no claim to ownership of these marks, nor to assert their owners as clients.