Market Value


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Related to Market Value: book value, fair market value

Market Value

The highest price a willing buyer would pay and a willing seller would accept, both being fully informed, and the property being exposed for sale for a reasonable period of time. The market value may be different from the price a property can actually be sold for at a given time (market price). The market value of an article or piece of property is the price that it might be expected to bring if offered for sale in a fair market; not the price that might be obtained on a sale at public auction or a sale forced by the necessities of the owner, but such a price as would be fixed by negotiation and mutual agreement, after ample time to find a purchaser, as between a vendor who is willing (but not compelled) to sell and a purchaser who desires to buy but is not compelled to take the particular article or piece of property.

market value

n. the price which a seller of property would receive in an open market by negotiation, as distinguished from a "distress" price on a forced or foreclosure sale, or from an auction. Market value of real property is normally determined by a professional appraiser who makes comparisons to similar property sales in the area, which are often called "comparables."

References in periodicals archive ?
Indonesia Paper Packaging Market Value Forecast 2016-2026
Also, the sales comparison approach is most applicable in understanding the fee simple interest of owner-occupied properties whereas, for leased buildings, it tends to be considered a secondary methodology for estimating market value.
If a company's market value is equal to its pre-SFAS 150 book value, and 100 percent of its shares are subject to mandatory redemption, the recorded liability under SFAS 150 will reduce the book value of the company to zero, which reduces the monetary value under the redemption requirement to zero, which raises the book value back to its pre-SFAS 150 amount, which then becomes the redemption price, and so on.
Chapman rattles off reasons why the company's market value dropped.
The market value of QUALCOMM, for example, had dropped by nearly 60 percent when this article went to press.
The limitation does not apply, however, to the grant of an option if the exercise price is at least 110 percent of fair market value of the shares (as determined at the time of grant) and if the option ceases to be exercisable on or before the fifth anniversary of the date of grant.
The term, fair market value (FMV) assumes the business to be on-going and offered for sale in the marketplace for a reasonable period of time.
1 Travel Intermediaries Market Value by Products Review, 2007-2011
Detailed analysis, region-wise (Americas, Asia-Pacific, Europe, Middle East & Africa),of car rental companies' key performance indicators such as market value by business travelers, market value by leisure travelers, market value at airports, market value at non-airports, fleet size, number of rental occasions, number of rental days, average rental length, utilization rate, and average revenue per day for the historic and forecast periods
New assets are commonly booked at their cost, but as various forms of depreciation are applied over the years, assets can grow in market value while decreasing significantly in value as reflected in financial statements.
Management should aim to maximize the dollar amount by which the company's market value exceeds the capital supplied by the firm's investors-- hence the name market value added.