Valuation

Definition

• The act or process of assessing value or price of a property through an appraisal.
• The act or process of measuring the present net worth of an asset or company. Many factors are taken into consideration during the stages of valuation, ranging from the objective to the subjective. For example, an asset like a car has a specific and easily determined market value, but in addition to tangible assets like property, the makeup of company's capital structure, and expected future earnings, a business may have intangibles that must be taken into account, such as the quality of the businesses management and their employees.

Synonyms
cost, appraisement, assessment, estimate, worth

Related Terms and Acronyms

• Appraisal — Definition,
  • An estimate of the market value of a piece of real estate made by a competent professional who knows local real estate prices and markets.
• Appraised Value — Definition,
  • An educated opinion of how much a property is worth.
• Assessments — Definition,
  • Special and local taxes imposed upon property which benefits from an improvement that has been made in the vicinity.
• Basis — Definition,
  • Relating to cost basis, this is the amount assigned to an asset from which a taxpayer determines capital gain or loss. For assets purchased, the basis is the price paid. Special rules apply to assets acquired through gift or inheritance, as well as to the value of stock funds held for a period during which earnings are reinvested.
  • That on which a thing rests or is founded.
• Best's Capital Adequacy Relativity — Definition,
  • A percentage used to measure a company's relative capital strength as compared to an industry peer composite.
• Capital Investments — Definition,
  • Money used to purchase permanent fixed assets for a business, such as machinery, land or buildings as opposed to day-to-day operating expenses.
• Commissioners' Reserve Valuation Method — Definition,
  • A method used to determine the minimum statutory reserves for annuities and insurance products.
• Current Market Value (CMV) — Acronym,
  • The estimated price determined by the recent sale of similar properties.
• Effective Age — Definition,
  • An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
• Extended Replacement Cost — Definition,
  • A replacement cost for an asset that exceeds that of the actual cash value of the asset.
• Fair Market Value (FMV) — Acronym, Very Important,
  • The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
• Full Market Value — Definition,
  • In reference to property taxes, usually refers to the tax rate applied to 100 percent of the property's value. Also full cash value.
• Future Value of an Annuity (FVA) — Acronym,
  • The value of an annuity at some future date.
• Intangible Asset — Definition,
  • Non-physical resources or rights to other assets. Patents, goodwill, permits and computer programs are examples of intangible assets.
• Intangible Property — Definition,
  • Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of tangible personal property.
• Low Ball Offer — Definition,
  • A way-below-market bid a buyer makes on a property or item.
• Market Value (MV) — Acronym, Important,
  • Also known as "Fair Market Value." The estimated value of a property which a seller could expect to receive under normal conditions.
• Median Price — Definition,
  • In a given area, the amount paid for a house in which half of the houses in that area sell for less and half sell for more.
• Purchase Price — Definition,
  • The total selling price of the home, including the cash down payment and the principal on the loan.
• Small- and Medium-sized Enterprises (SMEs) — Abbreviation,
  • Limits banks place on businesses to determine there size.
  ➥ A term widely used by the World Bank and the World Trade Organization (WTO).
• Startup Company — Definition,
  • A recently founded company that works on new products and services.
• Underinsurance — Definition,
  • When the amount of insurance coverage on an asset is less than the asset's full value.
• Useful Life — Definition,
  • The number of years depreciable business property is expected to be productive and in use.
• Valuation Clause — Definition,
  • A clause in an insurance contract that states how much an insurer is willing to pay for an asset after an insured event.
• Value Reporting Form — Definition,
  • A form used to keep track of a business's current inventory value.