Value


Also found in: Dictionary, Thesaurus, Medical, Financial, Acronyms, Idioms, Encyclopedia, Wikipedia.

Value

The estimated or appraised worth of any object or property, calculated in money.

The word value has many meanings and may be used in different senses. Because value is usually a relative term, its true meaning must be determined by the context in which it appears.

Value sometimes expresses the inherent usefulness of an object and sometimes the power of purchasing other goods with it. The first is called value in use, the latter value in exchange. Value in use is the utility of an object in satisfying, directly or indirectly, the needs or desires of human beings. Value in exchange is the amount of commodities, commonly represented by money, for which a thing can be exchanged in an open market. This concept is usually referred to as market value.

Courts have frequently used the word value without any clear indication of whether it referred to value in use or market value. Generally, however, the courts and parties in civil actions are concerned with market value. Though courts may refer to salable value, actual value, fair value, reasonable value, and cash value, these terms are synonymous with market value.

Value is also employed in various phrases in business and commercial usage. The phrase actual cash value is used in insurance to signify the cost of purchasing new replacement property less normal depreciation, though it may also be determined by the current market value of similar property or by the cost of replacing or repairing the property. Cash surrender value is used in life insurance to refer to the amount that the insurer will pay the policyholder if the policy is canceled before the death of the insured.

Book value is the value at which the assets of a business are carried on the company's books. The book value of a fixed asset is arrived at by subtracting accumulated depreciation from the cost of the asset. Book value may also refer to the net worth of a business, which is calculated by subtracting liabilities from assets. Liquidation value is the value of a business or an asset when it is sold other than in the ordinary course of business, as in the liquidation of a business.

In the Stock Market, par value is the nominal value of stock; it is calculated by dividing the total stated capital stock by the number of shares authorized. Stated value is the value of no par stock established by the corporation as constituting the capital of the corporation.

Cross-references

Fair Market Value.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

VALUE, common law. This term has two different meanings. It sometimes expresses the utility of an object, and some times the power of purchasing other good with it. The first may be called value in use, the latter value in exchange.
     2. Value differs from price. The latter is applied to live cattle and animals; in a declaration, therefore, for taking cattle, they ought to be said to be of such a price; and in a declaration for taking dead chattels or those which never had life, it ought to lay them to be of such a value. 2 Lilly's Ab. 620.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
12, 1996, the appraised value of a 1% MIL LP interest was determined to be $89,505.
The preference for course components was tallied by assigning a +1 value to a check indicating the student "liked" the component, a 0 value for no response and a -1 value if the student "disliked" the component.
This definition abandons a longstanding practice of using the transaction price for an asset or liability as its initial fair value. In other words, fair value will no longer be based on what you pay for something; it will now be based on what you can sell it for, also known as its "exit price."
In addition, the cost of an asset does not necessarily bear any relationship to its value. At the other end of the business spectrum, there is at least one entertainment company that has assigned no value to the multi-release recording contract of an artist whose last release sold more than 25 million units worldwide.
Businesses frequently will talk about their "value propositions," but as recently reported in Harvard Business Review, there seems to be little agreement as to what constitutes a value proposition, and more importantly what makes one persuasive enough to resonate with a customer.
Forced liquidation value (auction) is a professional opinion of the estimated most probable price expressed in terms of cash in U.S.
The second component, franchise value, reflects future profits the firm is likely to generate as a going concern.
The net asset approach bases the value of the metalcasting facility on the value of its tangible assets minus its liabilities (net assets).
Determining fair value requires managers to exercise judgment.
But even the most vociferous Economic Buyer is still making their decision based on the "value" they believe they are going to receive.
We propose value as the cornerstone of a new framework for regenerating higher education, and will concentrate here on the leadership and management challenges involved in implementation.
It is because on the whole, we often don't value speed, inexpensiveness, simplicity, and tininess.