underlying value

Definition

noun
the basic value of a company, including its assets, goodwill, etc.

Use underlying value in a sentence

Those who give money to charities usually do so for the underlying value of the company and the good that they do in the communities and areas that they serve.

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When looking to purchase a business, be sure to find out its underlying value which will let you determine the true basic value before you make a decision as to whether to purchase the business or not.

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Generally a stock will be priced according to its perceived worth plus prospects for the future, but when considering risks it is wise to keep in mind how much these differ from its underlying value at the present moment.

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