The VARIOUS EXPRESSIONS OF VALUE
MediaThere are several expressions of value. In this blog post we will get to know them.
There are several types of values.
Fair Market value
The first type of value is the Fair Market Value. The Fair Market Value can be defined as:
The price at which the property would change hands between a willing buyer and a willing seller. Both are not under any compulsion to buy and sell and have reasonable knowledge of relevant facts and information.
Alternatively, The International Glossary of Business Valuation Terms (IGBVT), defines fair market value as:
The ‘highest price’ in times of cash equivalents, at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arm’s length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts.
