The values presented in this article are the economic values that the assets and companies have when inserted in the market.
The economic value can be analyzed by the capacity of cash generation or the comparison with similar ones in the market or by the cost of production or formation.
The values usually used in commercial operations are:
- Market value: average value of free transactions in the main market;
- Investment value: value for a given investor at a given moment;
- Replacement value: replacement value with the same characteristics, but considers the technological upgrades, materials and processes;
- Reproduction value: reproduction value with the same characteristics (identical asset);
- Fair value: market value discounted marketing costs (net value for the seller);
- Settlement value: amount for sale in a term shorter than the average / normal term for sale;
- Forced settlement value: amount for immediate sale;
- Value for insurance: specific value according to specific rules;
- salvage value: residual (market) value of the asset at the end of its useful life;
- Special value: additional value to the market value due to the special interest of a buyer (eg synergies);
- Value in progress: value of the operation in progress (intangible / goodwill).
It should be noted that value is an economic concept, ie: it is a hypothetical price.
Price is the amount in currency actually paid for the asset or business.
These concepts are in agreement with the IVSC, ASA and RICS.