Intrinsic value is the hypothetical value of a security which it should command if all the information about it is available to the markets. It is the true worth of the investment in that security or asset.
Intrinsic value and ways to find it is what powers active management in investing. It is assumed that not all information with an impact on the security is known. The fund managers try and come up with their estimates of the intrinsic value of the assets and buy or sell depending on how it compares to the market price.