Net Debt To Estimated Valuation

AAA

DEFINITION of 'Net Debt To Estimated Valuation'

A ratio comparing the net value of a municipal bond issue to the estimated market value of the property secured by the debt. This ratio can differ significantly from a municipal bond's net debt to assessed valuation if real-estate prices for the municipality's holdings incur large increases or decreases.

INVESTOPEDIA EXPLAINS 'Net Debt To Estimated Valuation'

One of the factors that determines the quality of a municipal bond issue is the lower an organization's debt is relative to the estimated market value of its property, the less risky its bonds are deemed to be since there is less risk the government would not have the ability to finance repayment of the bond issue.



RELATED TERMS
  1. Net Debt To Assessed Valuation

    In a municipal bond issue, a ratio measuring the value of the ...
  2. Assessed Value

    The dollar value assigned to a property for purposes of measuring ...
  3. Assessor

    A local government official who determines the value of a property ...
  4. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
  5. Municipal Bond

    A debt security issued by a state, municipality or county to ...
  6. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
Related Articles
  1. The Basics Of Municipal Bonds
    Bonds & Fixed Income

    The Basics Of Municipal Bonds

  2. Weighing The Tax Benefits Of Municipal ...
    Taxes

    Weighing The Tax Benefits Of Municipal ...

  3. Where can I buy government bonds?
    Investing

    Where can I buy government bonds?

  4. Are Equity-Indexed Annuities Right For ...
    Savings

    Are Equity-Indexed Annuities Right For ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center