Is 'market value' the same as 'price'?

Not exactly. 'Market value' is an estimate of what something *should* sell for in an open market. The actual 'price' is what it *does* sell for, which can be higher or lower.

Who determines market value?

It is determined by the collective forces of supply and demand in the market. For complex assets, professional appraisers or valuers provide estimates based on comparable sales and market conditions.

Does market value change?

Yes, constantly. Market value is dynamic and fluctuates based on economic conditions, scarcity, perceived desirability, and new information.

What is the difference between 'market value' and 'book value'?

'Book value' is the value of an asset as recorded on a company's balance sheet (often based on historical cost minus depreciation). 'Market value' is what it could be sold for today, which is usually more relevant for investors.

Is “market value” formal?

Market value is usually formal/technical in register.

How do you pronounce “market value”?

Market value: in British English it is pronounced /ˈmɑːkɪt ˈvæljuː/, and in American English it is pronounced /ˈmɑːrkɪt ˈvæljuː/. Tap the audio buttons above to hear it.

market value: meaning, definition, pronunciation and examples

UK/ˈmɑːkɪt ˈvæljuː/US/ˈmɑːrkɪt ˈvæljuː/

Formal/Technical

My Flashcards

Quick answer

What does “market value” mean?

The price at which an asset would trade in a competitive auction setting, or the financial worth estimated based on current market prices.

Audio

Pronunciation

Definition

Meaning and Definition

The price at which an asset would trade in a competitive auction setting, or the financial worth estimated based on current market prices.

The perceived or estimated value of something based on what the current market is willing to pay, as opposed to its intrinsic or book value.

Dialectal Variation

British vs American Usage

Differences

No significant lexical or spelling differences. Concept is identical.

Connotations

Identical financial connotations in both varieties.

Frequency

Equally high frequency in business contexts in both regions.

Grammar

How to Use “market value” in a Sentence

The market value of [ASSET/ENTITY]to be worth [AMOUNT] at market valueto value [ASSET] at its market value

Vocabulary

Collocations

strong

assess the market valuedetermine the market valuecurrent market valueestimate the market valuefull market valuefair market value

medium

increase in market valuedecline in market valuemarket value approachmarket value assessment

weak

high market valuereal market valuetrue market valueperceived market value

Examples

Examples of “market value” in a Sentence

verb

British English

The estate agent will market-value the property next week.
The shares were market-valued at £5 each.

American English

The appraiser will market-value the property next week.
The assets were market-valued at $5 million.

adverb

British English

The house was priced market-value.

American English

The property was listed market-value.

adjective

British English

The market-value assessment came in lower than expected.
We need a market-value estimate.

American English

The market-value appraisal came in lower than expected.
We need a market-value estimate.

Usage

Meaning in Context

Business

Crucial for financial reporting, mergers & acquisitions, and investment analysis. E.g., 'The company's assets were written down to their market value.'

Academic

Used in economics, finance, and business studies papers discussing valuation theory and efficient markets.

Everyday

Used when discussing house prices, car values, or the worth of collectibles. E.g., 'What's the market value of a three-bedroom house in this area?'

Technical

Precisely defined in accounting standards (e.g., IFRS 13) and legal contexts, especially for taxation and divorce settlements.

Vocabulary

Synonyms of “market value”

Strong

fair market valuemarket capitalization (for companies)

Neutral

market pricecurrent valuetrading value

Weak

worth valuation price tag

Vocabulary

Antonyms of “market value”

book valueintrinsic valuepar value face value

Watch out

Common Mistakes When Using “market value”

Using 'market value' interchangeably with 'selling price' (the latter is the actual transaction price, which may differ).
Confusing 'market value' with 'replacement cost'.
Misspelling as 'marketvalue' (should be two words).

FAQ

Frequently Asked Questions

: Not exactly. 'Market value' is an estimate of what something *should* sell for in an open market. The actual 'price' is what it *does* sell for, which can be higher or lower.
: It is determined by the collective forces of supply and demand in the market. For complex assets, professional appraisers or valuers provide estimates based on comparable sales and market conditions.
: Yes, constantly. Market value is dynamic and fluctuates based on economic conditions, scarcity, perceived desirability, and new information.
: 'Book value' is the value of an asset as recorded on a company's balance sheet (often based on historical cost minus depreciation). 'Market value' is what it could be sold for today, which is usually more relevant for investors.
: The price at which an asset would trade in a competitive auction setting, or the financial worth estimated based on current market prices.
: Market value is usually formal/technical in register.
: Market value: in British English it is pronounced /ˈmɑːkɪt ˈvæljuː/, and in American English it is pronounced /ˈmɑːrkɪt ˈvæljuː/. Tap the audio buttons above to hear it.

Phrases

Idioms & Phrases

“to be below/above market value”
“to take a hit on market value”

Learning

Memory Aids

Mnemonic

Think: MARKET = where things are bought and sold, VALUE = what it's worth. MARKET VALUE = what it's worth right now in the market.

Conceptual Metaphor

VALUE IS A MARKET PRICE; AN ASSET IS A COMMODITY.

Practice

Quiz

Fill in the gap

The insurer paid the of the damaged goods, not their original purchase price.

Multiple Choice

Which term is closest in meaning to 'market value' in a financial context?