Asset Valuation

  

Categories: Stocks, Bonds, Trading

Looking to sell some property you own? First you need to figure out how much it is likely worth. This process is called "asset valuation."

In business terms, the asset in question might be a division of the company, or a particular product line, or a piece of property, or even financial assets, like stocks and bonds. Experts use various ways to evaluate the value of an asset, depending on the type of asset. Some assets, like stock, have relatively obvious valuations (they trade all day on a stock exchange with constant price updates). Others might be more difficult, since there might not be an instant market. At the end of the day, assets, generally speaking, are worth whatever someone else is willing to pay for them. And that doesn't include Grandma paying $20 for that clay pot you made in 3rd grade.

Related or Semi-related Video

Finance: What is Control Value?15 Views

00:00

Finance allah shmoop what is control value dance on a

00:07

fifty shades thing Well there's a partnership a semi evil

00:10

one there was once a tv siri's It was exorbitantly

00:14

expensive to produce but everyone wanted to make it So

00:18

it ended up being made not by one studio but

00:22

by three viacom paramount disney and then news corp fox

00:27

Before it was disney news corp fox well each of

00:29

the three partners put in a third of the money

00:31

and split all the money distributions equally The problem on

00:35

the show ended up being hugely successful when it ran

00:38

for the first time on network tv so that was

00:41

great but now it's in reruns and because all three

00:43

competitors generally hate each other he's financially if their job

00:47

too none are willing to run the show a lot

00:50

on their cable network or broadcast network because then they

00:53

generate revenues for their hated competitors so they don't run

00:57

the tv series even though people want to see it

00:59

And this is a big fat bummer to the actors

01:01

writers and producers of the show who were banking on

01:05

rerun royalties to pay for their divorces if one of

01:08

the studios owned the siri's I'ii controlled it let's call

01:12

that siri's sunlight ing well then the siri's would heir

01:16

a ton more and presumably generate a ton more desperately

01:20

needed revenues What do you think divorce lawyers work for

01:23

free Well the control value of owning that asset then

01:27

is huge because if it were owned by one player

01:31

well then that player could run it again and again

01:33

and again and again on their network like think big

01:36

bang on tbs and then monetize that asset and massively

01:40

so there's Incremental control value with the well controlling a

01:45

property And yet it's not to be confused with remote

01:48

control value which is about a buck twenty five on 00:01:51.209 --> [endTime] ebay

Up Next

Finance: What is the Difference Between Market Value and Book Value?
42061 Views

What is the difference between market value and book value? These two figures describe what a company is worth. Book value does this by finding the...

Finance: What is a WACC Model?
18 Views

WACC is an acronym for weighted average cost of capital. A company can raise money either through selling equity or by raising debt. When measuring...

Finance: What is Discounted Cash Flow?
9 Views

What is Discounted Cash Flow? Discounted Cash Flow is a model that’s used to determine the value of an investment or company. It’s pretty compl...

Finance: What is Assessed Value?
6 Views

What is Assessed Value? Assessed value is used to determine a piece of real estate’s tax liability. An assessor measures what the property is wor...

Find other enlightening terms in Shmoop Finance Genius Bar(f)