FFinance glossary

Fair Value

Quick definition

Valuing an asset at its current market price.

Overview

Fair value is the estimated price at which an asset would change hands between well-informed, willing parties, reflecting its current market value.

Common Uses

  • Financial valuation
  • Asset transactions
  • Accounting

Examples in Small Businesses

  • Revaluing assets
  • Setting sale prices
  • Managing investments
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