Fair Value
A Fair Value is an market price estimate of an economic item.
- Example(s):
- Counter-Example(s):
- See: Fair Market Value, Accounting, Schools of Economic Thought, Prediction, Market Price, Supply And Demand.
References
2022
- (Wikipedia, 2022) ⇒ https://en.wikipedia.org/wiki/Fair_value Retrieved:2022-11-30.
- In accounting and in most schools of economic thought, fair value is a rational and unbiased estimate of the potential market price of a good, service, or asset. The derivation takes into account such objective factors as the costs associated with production or replacement, market conditions and matters of supply and demand. Subjective factors may also be considered such as the risk characteristics, the cost of and return on capital, and individually perceived utility.