Intrinsic value
Intrinsic value is the value consumers assign to a product or service. Here the question is not what price they have to pay, but what value the product delivers to them.
Intrinsic value is closely related to the concept of price perception.
In business economics
The accounting definition of intrinsic value is the current value of all the company's assets, less any liabilities that exist. In other words, equity. Unlike book value, it does not simply look at the value on the balance sheet, but at the actual value of assets at the time.
Intrinsic value of money
With cash, a distinction can be made between the intrinsic value and the face value of a coin or bank bill. For centuries, there was a direct relationship between the value of a coin as a means of payment and the value of the material from which it was made. Today, materials such as gold, silver and bronze have long since been replaced by cheaper metals and high amounts are printed on a sheet of paper.
Our payment system is based primarily on trust and underlying guarantees. The intrinsic value of money (how much it costs to produce money) is significantly lower than the value that money represents.
