Intrinsic value and market value are two different concepts used to evaluate the worth of an asset, such as a stock. Intrinsic value is the perceived underlying value of an asset based on fundamental analysis of the company, such as its earnings, assets, and growth prospects. Intrinsic value calculations aim to determine the true value of the asset, independent of market forces or sentiment.

On the other hand, market value is the price at which an asset can be bought or sold in the open market, based on supply and demand. Market value can be influenced by various factors, including investor sentiment, market trends, and economic conditions.

While intrinsic value provides an objective measure of an asset's value, market value is subjective and can fluctuate widely based on market conditions. Investors often compare the two values to determine whether an asset is undervalued or overvalued and use this information to make investment decisions.

Intrinsic value and market value are key concepts in investing but differ significantly.

Intrinsic value represents the true, fundamental worth of an asset based on its underlying factors, such as earnings, cash flows, growth potential, and risk. It is often calculated using valuation models like discounted cash flow (DCF) analysis or other financial metrics.

Market value, on the other hand, is the price at which an asset is currently trading in the market, driven by supply and demand dynamics. It reflects investor sentiment, market trends, and external factors like news or economic conditions.

While market value can fluctuate wildly due to emotions and speculation, intrinsic value remains more stable. Understanding this difference helps investors identify opportunities when an asset is overvalued or undervalued.