Valuation

Liquidation Value

Definition

What is Liquidation Value?

The estimated net amount available if assets are sold and liabilities paid.

Example in practice

A distressed investor compares the share price with liquidation value.

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The price at which an asset could trade in the market at a given time.

An estimate of an asset's underlying economic worth based on expected cash flows, assets, or earning power.

An estimate of an asset's appropriate value under specified assumptions or accounting standards.

Present value of expected cash inflows minus present value of expected cash outflows.

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