a method within the asset approach whereby all assets and liabilities (including off-balance sheet, intangible, and contingent) are adjusted to their fair market values (NOTE: In Canada on a going concern basis).

see Adjusted Book Value Method.

Appraisal

see Valuation.

Appraisal Approach 

see Valuation Approach.

see Valuation Date.

see Valuation Method.

see Valuation Procedure.

a general way of determining a value indication of a business, business ownership interest, or security using one or more methods based on the value of the assets net of liabilities.

see Net Book Value .

a conversion of a single period of economic benefits into value.

any multiple or divisor used to convert anticipated economic benefits of a single period into value.

a method within the income approach whereby economic benefits for a representative single period are converted to value through division by a capitalization rate.

any divisor (usually expressed as a percentage) used to convert anticipated economic benefits of a single period into value.

cash that is generated over a period of time by an asset, group of assets, or business enterprise. It may be used in a general sense to encompass various levels of specifically defined cash flows. When the term is used, it should be supplemented by a qualifier (for example, "discretionary" or "operating") and a specific definition in the given valuation context.

a general way of determining a value indication of an individual asset by quantifying the amount of money required to replace the future service capability of that asset.

the expected rate of return that the market requires in order to attract funds to a particular investment.

an amount or percentage deducted from the value of an ownership interest to reflect the relative absence of marketability.

a rate of return used to convert a future monetary sum into present value.

a method within the income approach whereby the present value of future expected net cash flows is calculated using a discount rate.

a method within the income approach whereby the present value of future expected economic benefits is calculated using a discount rate.

inflows such as revenues, net income, net cash flows, etc.

the period of time over which property may generate economic benefits.

see Valuation Date.

see Business Enterprise.

the owner’s interest in property after deduction of all liabilities.

a specific way of determining a value indication of a business, business ownership interest, or security determined as the sum of a) the value of the assets derived by capitalizing excess earnings and b) the value of the selected asset base. Also frequently used to value intangible assets.

the price, expressed in terms 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 arms 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. {NOTE: In Canada, the term "price" should be replaced with the term "highest price"}

liquidation value, at which the asset or assets are sold as quickly as possible, such as at an auction.

an ongoing operating business enterprise.

the value of a business enterprise that is expected to continue to operate into the future. The intangible elements of Going Concern Value result from factors such as having a trained work force, an operational plant, and the necessary licenses, systems, and procedures in place.

Goodwill

that intangible asset arising as a result of name, reputation, customer loyalty, location, products, and similar factors not separately identified.

the value attributable to goodwill.

a general way of determining a value indication of a business, business ownership interest, security, or intangible asset using one or more methods that convert anticipated economic benefits into a present single amount.

Intangible Assets

non-physical assets such as franchises, trademarks, patents, copyrights, goodwill, equities, mineral rights, securities and contracts (as distinguished from physical assets) that grant rights and privileges, and have value for the owner.

the value that an investor considers, on the basis of an evaluation or available facts, to be the "true" or "real" value that will become the market value when other investors reach the same conclusion.

the act or process of determining the value of a business, or asset, business ownership interest, security, or intangible asset with limitations in analyses, procedures, or scope.

the net amount that would be realized if the business is terminated and the assets are sold piecemeal. Liquidation can be either "orderly" or "forced.”

a general way of determining a value indication of a business, business ownership interest, security, or intangible asset by using one or more methods that compare the subject to similar businesses, business ownership interests, securities, or intangible assets that have been sold.

the ability to quickly convert property to cash at minimal cost.

see Discount for Lack of Marketability.

a method within the market approach whereby pricing multiples are derived from transactions of companies engaged in the same or similar lines of business.

the inverse of the capitalization rate.

with respect to a business enterprise, the difference between total assets (net of accumulated depreciation, depletion, and amortization) and total liabilities as they appear on the balance sheet (synonymous with Shareholder's Equity). With respect to a specific asset, the capitalized cost less accumulated amortization or depreciation as it appears on the books of account of the business enterprise.

the value of the business enterprise's tangible assets (excluding excess assets and non-operating assets) minus the value of its liabilities.

assets not necessary to ongoing operations of the business enterprise. {NOTE: in Canada, the term used is "Redundant Assets"}.

liquidation value at which the asset or assets are sold over a reasonable period of time to maximize proceeds received.

an assumption regarding the most likely set of transactional circumstances that may be applicable to the subject valuation; e.g. going concern, liquidation.

the value, as of a specified date, of future economic benefits and/or proceeds from sale, calculated using an appropriate discount rate.

an amount of income (loss) and/or change in value realized or anticipated on an investment, expressed as a percentage of that investment.

see Non-Operating Assets.

the date conclusions are transmitted to the client.

the current cost of a similar new property having the nearest equivalent utility to the property being valued.

the current cost of an identical new property.

the minimum rate of return acceptable by investors before they will commit money to an investment at a given level of risk.

the value as of the end of the discrete projection period in a discounted future earnings model.

the amount, expressed as a percentage, earned on a company’s common equity for a given period.

see Return on Invested Capital and Return on Equity.

a mathematical formula developed from the relationship between price and certain variables based on experience, observation, hearsay, or a combination of these; usually industry specific.

acquirers who believe they can enjoy post-acquisition economies of scale, synergies, or strategic advantages by combining the acquired business interest with their own.

the identification of the type of value being used in a specific engagement; e.g. fair market value, fair value, investment value.

physical assets (such as cash, accounts receivable, inventory, property, plant and equipment, etc.).

Auction, Trade In, Open Market Method.

the act or process of determining the value of a business, business ownership interest, security, or intangible asset.

a general way of determining a value indication of a business, business ownership interest, security, or intangible asset using one or more valuation methods.

the specific point in time as of which the valuator's opinion of value applies (also referred to as "Effective Date" or "Appraisal Date").

within approaches, a specific way to determine value.

the act, manner, and technique of performing the steps of an appraisal method.

a fraction in which a value or price serves as the numerator and financial, operating, or physical data serves as the denominator.