definition of intrinsic

Intrinsic is that which is essential to something. The opposite of the intrinsic is the extrinsic, that is, those elements that are not essential and genuine of something. Heat is intrinsic to the sun and the same is true of whiteness in relation to snow or desire in relation to love.

The idea of ​​intrinsic is usable in economics, in philosophy or in relation to the human being and in all three contexts the concept of intrinsic value is spoken of.

In economics

Intrinsic value in economics applies to the actions of an entity. It is not an accounting concept but an economic one. It is a subjective value but of great importance to value a stock exchange business. To calculate the intrinsic value of a share, the Discount Cash Flow (DCF) method is used as a priority, which consists of estimating foreseeable earnings and discounting interest to find its present value. The concept of intrinsic value of shares serves to measure something intangible and imprecise. such as a business model or the patents of an entity. In contrast to this concept, another is used, the market value of a share, which is the price that someone is willing to pay.

In philosophy

Some philosophical currents establish the difference between the extrinsic and the intrinsic. The extrinsic is not characteristic of something and the intrinsic is. This distinction is useful for understanding the properties of certain concepts. Thus, the intrinsic principle of something is that which defines it, its substantial element and without which it could not exist. On the contrary, the extrinsic principle or value of a concept has an accidental and secondary character.

Throughout the history of human thought, philosophers have reflected on what is intrinsic to nature, human reason, will or love. The reason for this type of reflection is obvious: to discover the genuine and the authentic to differentiate it from the superfluous or accessory. In other words, philosophers seek the fundamental, that without which the rest could not exist.

In the human being

What gives us value as human beings is not what we can buy or want but the aspects of the human condition that define us as individuals, also known as intrinsic values. In some way these values ​​are what make us people, such as freedom, dignity or honor. Let's illustrate this idea with a concrete example: a man who goes with a woman to show her to others for her beauty. In this case, the man's attitude towards woman is based on her extrinsic value and not on what woman is as an individual.