Going Concern Value

When we say going concern value it is assume that the firm will continue to operate for foreseeable
future. It can also be defined as the value of the securities of a profitable operational company with
long-term business prospects. The company's value would be measured in terms of predicted profits,
dividends, or growth. Unless there is reason to suspect that a company will go out of business, it should
always be considered a going concern.

Liquidation Value

The overall value of a company's physical assets if it were to go out of business and have its assets sold is
known as liquidation value and in order to settle the liabilities immediately and to obtain cash as quickly
as possible. A firm is liquidated as part of a bankruptcy process. Because the sale transaction does not
enough time to make the sale visible to all potential buyers, the computed amount would be less than
fair market value.

Market Value

The market value is what the entity would receive as the price of the asset in the market. It is also
constantly changing because it depends on many factors such as the climate change and the dynamics of
demand and supply.

In the sellers perspective, the market value might be higher than what a buyer will pay for the property
or it’s true market price. In this sense, value can create demand which can influence the price. However,
value alone cannot influence price without the demand. As supply increases and demand decreases,
price goes down, and value is not influential and vice versa.

Book Value

Is the carrying value of the company's assets less the depreciation, impairment cost or amortization
incurred and gives the firms total worth for possible investors. It is located in the financial reports,
particularly the balance sheet account balance. However, investors must rely on the latest balance sheet
since it is usually reported quarterly or annually.

Intrinsic Value

It is the price the investors is willing to pay for an investment despite its risk. It also helps them to know
whether the asset is overvalued or undervalued compared to the market value price of the asset. The
intrinsic value includes other variables such as the brand names, copyrights and trademarks.