Valuation involves determining the worth of an asset, business, or investment, and different types of value are considered based on the purpose and context of the valuation. 

In the subject of Valuation, there are so many different types of value for which valuation can be requested. We will look at a few common Types of Value which are most commonly being used and needed by the different entities requiring a valuation. 

1. Market Value (Fair Market Value - FMV) 

The price at which an asset would trade in a competitive, open market between a willing buyer and a willing seller, both having reasonable knowledge of relevant facts. It assumes no compulsion to buy or sell. 

2. Fair Value 

Often used in financial reporting and accounting (IFRS, GAAP), fair value is the estimated price in an orderly transaction between market participants at the measurement date. It may differ from market value in cases where strategic advantages or synergies exist. 

3. Investment Value (Value to the Owner) 

The value of an asset to a specific investor based on individual investment requirements, synergies, or expected benefits. It differs from market value, as it is influenced by personal or strategic considerations. 

4. Intrinsic Value 

The theoretical or true value of an asset based on fundamental analysis, considering future cash flows, growth potential, and risk. It is commonly used in equity valuation and financial analysis. 

5. Book Value (Net Asset Value - NAV) 

The value of an asset or business based on its balance sheet, calculated as: 
Book Value = Total Assets - Total Liabilities 
It represents the accounting value of an asset but may not reflect its current market value. 

6. Liquidation Value 

The estimated amount that would be realized if an asset or business is sold quickly, often at a discount. It can be: 

  • Orderly Liquidation Value (OLV) – Sale over a reasonable time period. 
  • Forced Liquidation Value (FLV) – Sale under distress conditions. 

7. Going Concern Value 

The value of a business assuming it will continue to operate in the foreseeable future, rather than being liquidated. It includes tangible and intangible assets. 

8. Salvage Value 

The estimated residual value of an asset at the end of its useful life, often used for depreciation calculations. 

9. Replacement Cost Value 

The cost to replace an asset with a new one of similar utility, often used in insurance valuations. 

10. Economic Value (Economic Value Added - EVA) 

The present value of future economic benefits derived from an asset or investment, considering opportunity costs. 

11. Synergistic Value 

The additional value realized when two entities combine, often considered in mergers and acquisitions. 

12. Special Value 

A premium value that arises from unique benefits to a particular buyer, such as a strategic acquisition. 

13. Guideline Value or Circle Rate of Guidance Value: 

This is the value given for Guidance by the State Government for the purpose of Stamp Duty registration. 

14. Market rent  

This the estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.