Embedded Value
Categories: Investing, Company Valuation
Wasn't this a riff on Geraldo Rivera and The Gulf War with reporters hangin' with SEALs? Eh, maybe not.
Think: the diamond embedded in your ring. The value of the ring is based on what's...stuck into it. Only now, with insurance companies...
Embedded value is a way to determine what a life insurance company is worth. It includes the current value of the company's assets, as well as the value of future profits.
See? The value embedded in it.