Market Value

What is Market Value?

Market Value Definition: The market value is the price or going rate at that an asset can be bought in an open marketplace.

It’s also the value given to an asset or goods for purchase, based on the demand, supply, and other factors.

Market value is calculated using valuations such as price-to-earnings and price-to-sales, where a higher valuation means more excellent market value.

The change in market value can vary considerably based on many factors, including demand and supply, economic situations, and operating operations.

In the event an asset is in high demand, it may be purchased above market value, or if there is a sudden loss in demand and too much supply, the cost may decrease significantly.

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