The actual value of a security, as opposed to its market value or book value, is the intrinsic value of the security. Intrinsic value may differ from market value because of brand names, patents, and other intangibles that are difficult for investors to quantify. There are various approaches, but there is no standard formula for calculating the intrinsic value of an asset. The concept of intrinsic value is also used in options trading where intrinsic value measures the amount by which the option is in the money