Fair Value

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Dictionary Says

Definition of 'Fair Value'

1. The estimated value of all assets and liabilities of an acquired company used to consolidate the financial statements of both companies.

2. In the futures market, fair value is the equilibrium price for a futures contract. This is equal to the spot price after taking into account compounded interest (and dividends lost because the investor owns the futures contract rather than the physical stocks) over a certain period of time.
Investopedia Says

Investopedia explains 'Fair Value'

2. The "fair value" quoted on TV refers to the relationship between the futures contract on a market index and the actual value of the index. If the futures are above fair value then traders are betting the market index will go higher, the opposite is true if futures are below fair value.

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'Fair Value'

  • DCF Analysis: Coming Up With A Fair Value | Investopedia

    http://www.investopedia.com/university/dcf/dcf4.asp
    DCF Analysis: Coming Up With A Fair Value. ... Calculating the Fair Value of Equity
    But we are not finished yet - we cannot forget about debt. ...

  • Fair Value Proposal For Loans

    http://stocks.investopedia.com/stock-analysis/2010/Fair-Value-Proposal-For-Loans-HBAN-RF-CMA-BBT-USB0629.aspx
    The Financial Accounting Standards Board has proposed changes to accounting
    rules that would require banks to value loans at fair value. ...

  • Yum! Brands Trading At Fair Value

    http://stocks.investopedia.com/stock-analysis/2010/Yum-Brands-Trading-At-Fair-Value-YUM-DRI-EAT-WEN-JACK0716.aspx
    ... Article; Comments (0). Yum! Brands Trading At Fair Value. Posted:
    Jul 16, 2010 09:29 AM by Ryan C. Fuhrmann , CFA. ...

  • Assessing Bank Assets: Are Your Savings Safe?

    http://www.investopedia.com/articles/fundamental-analysis/09/assessing-bank-assets.asp
    ... Often called mark-to-market, measuring the fair value of financial assets and
    liabilities is an essential step when analyzing the fundamentals of a financial ...

  • Employee Stock Options: Valuation and Pricing Issues ...

    http://www.investopedia.com/university/employee-stock-options-eso/eso3.asp
    ... the full 10 years (assumed below is 10 years for simplification), or because a grantee
    may conduct a premature exercise, some fair value assumptions are ...

  • Accounting For Intercorporate Investments

    http://www.investopedia.com/articles/fundamental-analysis/11/accounting-intercorporate-investment.asp
    ... At acquisition, the assets (investment in investee) are recorded on the
    investing firm's (investor) balance sheet at fair value. ...

  • Mark-To-Market: Tool Or Trouble?

    http://www.investopedia.com/articles/fundamental-analysis/09/mark-to-market-accounting.asp
    ... (To learn about how mark-to-market accounting contributed a financial crisis in
    the US read Mark-To-Market Mayhem.) Measuring Fair Value Internal Revenue Code ...

  • DCF Analysis: Introduction | Investopedia

    http://www.investopedia.com/university/dcf/
    ... By Ben McClure Contact Ben It can be hard to understand how stock analysts come
    up with "fair value" for companies, or why their target price estimates vary so ...

  • Impairment Charges: The Good, The Bad and The Ugly

    http://www.investopedia.com/articles/analyst/110502.asp
    ... Then the goodwill must be tested (at least annually) to determine if the recorded
    value of the goodwill is greater than the fair value. ...

  • How To Avoid Closing Options Below Intrinsic Value

    http://www.investopedia.com/articles/optioninvestor/04/120804.asp
    ... 10 cents! Why is that? It is because the market maker(s) would love to
    buy a deep in-the-money call below the fair value. If the ...

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