• Asset valuation is the process of determining the fair market value of an asset.

  • Asset valuation often consists of both subjective and objective measurements.
  • Net asset value is the carrying amount of tangible assets less intangible assets and liabilities.
  • Absolute value models value assets only based on the characteristics of that asset, such as discounted dividend, discounted free cash flow, housing income, and discounted asset models.
  • Relative valuation ratios, such as the P/E ratio, help investors determine the value of assets by comparing similar assets.