1. What is ‘Value’?

Value means that something is held to deserve; the importance, worth, or usefulness of something.
Everything under the sun has value. There is nothing in God’s creation that does
not have value. This applies to all physical things. If something has not been
assigned any value, it can only be saidthat its value or utility has not yet been
explored or discovered yet.
Value is the ‘worth’ of a thing. It can also be defined as ‘a bundle of benefits’ expected from it. Itcan be
tangible or intangible.

Value is defined as:

a. The worth, desirability, or utility of a thing, or the qualities on which these depend
b. Worth as estimated
c. The amount for which a thing can be exchanged in the market
d. Purchasing power
e. Estimate the value of, appraise (professionally)

2. Explain the nature and scope of Valuation.

Valuation is a process by which analysts determine the present or expected worth of a stock, company,
or asset. The purpose of valuation is to appraise a security and compare the calculated value to the
current market price in order to find attractive investment candidates.

Valuation is defined as:

• Estimation (esp. by professional valuer) of a thing’s worth
• Worth so estimated
• Price set on a thing

3. How is Value different from cost and price?

Cost of your product or service is the amount you spend to produce it. Price is your financial reward for
providing the product or service. Value is what your customer believes the product or service is worth to
them.

Cost is defined as ‘resources sacrificed to produce or obtain a thing, (a product or

service).

Price is what is charged by a seller or provider of product or service. Many a

time, it is a functionof market forces.