Investment Business Value Definition

Definition

The measure of business value used to determine what a business is worth to a particular investor or business owner.

What It Means

Different people may have different goals for owning and running a business. In addition, people may perceive the risks associated with business ownership differently. These differences may affect what these business people believe a company is worth.

The fair market value standard measures what a business is worth to a hypothetical average investor. The investment value standard lets you determine the value to a real business person with specific business ownership objectives.

See Also