Value

AAA

DEFINITION of 'Value'

The monetary, material or assessed worth of an asset, good or service. In accounting, value describes what something is worth in terms of something else. For example, the value of a loaf of bread might be $3; the $3 for the loaf of bread would represent the generally accepted worth of the bread.


In economics, value describes the merit of the benefits of ownership. The benefits of ownership include utility, the pleasure or satisfaction gained by consumption of a particular good or service; and power, the ability of a good or service to be exchanged for other goods, services or money.

INVESTOPEDIA EXPLAINS 'Value'

Value is used to quantify the worth of something, and different types of value can be applied to explain various situations. For example, the value of a company can be described in terms of its intrinsic value, book value, actual cash value or market value.


Value can be perceived, as in the way consumers perceive the ability of a good or service to meet their needs and their willingness to pay for the good or service.


The value of an asset, good or service can change over time. For example, the price of a security fluctuates.


Value can also relate to how people feel about something, describing how something is regarded and its importance to the individual. For example, a memento may have very little monetary value but have significant sentimental value.

RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Intrinsic Value

    1. The actual value of a company or an asset based on an underlying ...
  3. Book Value

    1. The value at which an asset is carried on a balance sheet. ...
  4. Appraiser

    A practitioner who has the knowledge and expertise necessary ...
  5. Fair Market Value

    The price that a given property or asset would fetch in the marketplace, ...
  6. Book Value Reduction

    Reducing the value at which an asset is carried on the books ...
Related Articles
  1. Calculating The Present And Future Value ...
    Investing Basics

    Calculating The Present And Future Value ...

  2. The 4 Basic Elements Of Stock Value
    Markets

    The 4 Basic Elements Of Stock Value

  3. Understanding The Time Value Of Money
    Investing Basics

    Understanding The Time Value Of Money

  4. How An IPO Is Valued
    Investing

    How An IPO Is Valued

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center