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Perspectives Paper: Market Value, an Established Basis of Value

1 December 2021
In our first perspectives paper, Challenges to Market Value, the IVSC Tangible Assets Board (TAB) explored a number of topics pertaining to Market Value, which is one of the most...

In our first perspectives paper, Challenges to Market Value, the IVSC Tangible Assets Board (TAB) explored a number of topics pertaining to Market Value, which is one of the most common basis of value used in valuations. Topics discussed included: Price versus value, relating various forms of market evidence to a basis of value, the availability of market information in a pandemic world, prudential value and its comparison to Market Value, and value in volatile listed markets.

A broad range of feedback was received in relation to this paper. The overarching feedback from valuation professionals is that whilst the Market Value basis of value is generally sound from a valuers’ perspective, the concept is frequently misunderstood and misinterpreted by a range of valuation stakeholders, as outlined in the first Perspective Paper in this series. This second Perspective Paper seeks to further explore this topic and feedback in more detail, including discussions on:

  • Price, Cost, Value and Worth
  • How do we define what the ‘market’ is and how does this impact on Market Value?
  • What is the Market Value conceptual framework?
  • Is market Value backward looking?
  • Are the ‘peaks’ and ‘troughs’ truly captured when using a Market Value premise?
  • How does the valuer utilise assumptions and special assumptions with Market Value?
Download the paper

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One Comment

  • Javier Ayala says:

    Dear, TAB members,

    After a few months we finally managed to send tsome feedback through to the IVSC about Perspective Papers relating Market Value as Basis of .

    We found very comprehensive both the papars which clarify the differences of some of the most common concepts from the economy sciences but which perhaps needed to be clarified for some satakeholders so very helpful as it brings the voice from the standard setter with relation ot it.

    In attachment, we are ending some feedback with the hope they are helpful. In the end, we believe that the understanding of the Basis of Value, and concepts like value, worth, price and costs and its relation with valuation will better understood as the valuation stakeholders and professionals get IVS familiarized.

    Kind regards

    Perspectives Paper Market Value, an Established Basis of Value

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There are more than 180 member organisations
of the IVSC, operating in 137 countries worldwide. Join them.

Become part of a global network working to enhance valuation standards and professionalism.