Author(s): Li Jianxun
The fair value of a company can be established through a company valuation for a number of purposes, such as sale price, determining partner ownership, taxation, and even divorce processes. The process of estimating a company's present value while considering all of its facets involves doing a business valuation. The methods of business appraisal listed below are by no means all of them. Replacement value, breakup value, asset-based valuation, among many more approaches, is further techniques. The market value of a bond or stock is determined by buyers and sellers through trading on an exchange. However, the term intrinsic value refers to a security's perceived value based on potential future earnings or other characteristics unconnected to a security's market value.