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Dictionary by pitch.dog
Valuation methods & enterprise value · Working

Fair value

Also called: FV

ELI5

A measurement concept defined by the applicable accounting or valuation framework, not simply management's preferred price.

Used in conversation

“How sensitive is fair value to the discount rate and terminal assumptions?”

Pitch context

You will see “Fair value” in financial models, budgets, board packs and investor materials when the discussion reaches valuation methods & enterprise value.

Why it matters: In valuation methods & enterprise value, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.