Market value definition (2024)

FAQs

What is the definition of market value? ›

Market value is the price of an asset on the marketplace, based on the prices buyers are willing to pay and what sellers are willing to accept. For publicly traded companies, market value refers to the market capitalization: the number of outstanding shares times the share price.

Market value is an estimate of the price at which a property will sell at a particular time.

Market value is the term used to describe how much an asset or a company is worth on the financial market, according to market participants. It is commonly used to refer to the market capitalisation of a company, which is calculated by multiplying the number of shares in circulation by the current market price.

Market value is the highest price that a willing buyer will pay for a good or service and the lowest price at which a willing seller will sell it if both the buyer and seller have all the relevant information concerning the purchase and the good or service has been exposed to the market for a reasonable time.

Market value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.

Market value `as is on the appraisal date means an estimate of the market value of a property in the condition observed upon inspection and as it physically and legally exists without hypothetical conditions, assumptions, or qualification as of the date the appraisal is prepared.(2)

the value of a business, property, etc., in terms of what it can be sold for on the open market; current value ( book value ). market price.

What Is Market Price? The market price is the current price at which an asset or service can be bought or sold. The market price of an asset or service is determined by the forces of supply and demand.

The fair market value is the price an asset would sell for on the open market when certain conditions are met. The conditions are: the parties involved are aware of all the facts, are acting in their own interest, are free of any pressure to buy or sell, and have ample time to make the decision.

Market value—also known as market cap—is calculated by multiplying a company's outstanding shares by its current market price. If XYZ Company trades at $25 per share and has 1 million shares outstanding, its market value is $25 million.

What is the best definition of value? ›

Value has to do with how much something is worth, either in terms of cash or importance. As a verb, it means "holding something in high regard," (like "I value our friendship") but it can also mean "determine how much something is worth," like a prize valued at $200.

The market value is the value of a company according to the financial markets. The market value of a company is calculated by multiplying the current stock price by the number of outstanding shares that are trading in the market. Market value is also known as market capitalization.

Market Value. A type of value, stated as an opinion, that presumes the transfer of a property, as of a certain date, under specific conditions set forth in the value definition that is identified by the appraiser as applicable in an appraisal.

SMV is short market value, which is the sales price of the securities that have been borrowed from the broker-dealer for the short sale.

Market value of equity represents how much investors think a company is worth today. Market value of equity is the same as market capitalization and both are calculated by multiplying the total shares outstanding by the current price per share.

The market value represents the value of a company according to the stock market. It is the price an asset would get in the marketplace. In the context of companies, market value is equal to market capitalization. It is a dollar amount computed based on the current market price of the company's shares.

An appraised value is assigned to a property by a professional real estate appraiser at a specific point in time. On the flip side, market value is a variable that's determined by larger market forces and economic conditions.

In summary, while market value reflects the estimated value of the asset based on empirical data and conducted by an unbiased third party, investment value or worth is the subjective value of the asset to a specific individual with a unique strategy and risk profile.