Asset Valuation


DEFINITION of 'Asset Valuation'

A method of assessing the worth of a company, real property, security, antique or other item of worth. Asset valuation is commonly performed prior to the sale of an asset or prior to purchasing insurance for an asset.

BREAKING DOWN 'Asset Valuation'

Asset valuation may consist of both subjective and objective measurements. For example, in valuing a company, there is no number on the company's financial statements that tells how much its brand name is worth; this aspect of asset valuation must be subjective. On the other hand, net profit is an objective measurement based on the company's income and expense figures.

Common methods for determining an asset's value include comparing it to similar assets and evaluating its cash flow potential. Acquisition cost, replacement cost and deprival value are also methods of asset valuation.

  1. Market Approach

    A method of determining the appraisal value of an asset based ...
  2. Rich Valuation

    An asset that is being valued by investors at a very substantial ...
  3. Discounted After-Tax Cash Flow

    An approach to valuing an investment that looks at the amount ...
  4. Intrinsic Value

    Intrinsic value is the actual value of a company or an asset ...
  5. Income Statement

    A financial statement that measures a company's financial performance ...
  6. Valuation

    The process of determining the current worth of an asset or company. ...
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