Fundamental Value

Fundamental value refers to the intrinsic worth of an asset, such as a stock or real estate, based on its underlying factors. It considers aspects like earnings, assets, growth potential, and the economic environment. Essentially, it's an estimate of what a truly valuable asset should be worth, regardless of short-term market fluctuations. Investors use this concept to determine if an asset is priced fairly or if it presents a buying or selling opportunity. In simple terms, fundamental value is the true, long-term worth of an asset based on its actual financial health and prospects.