- Investment value
Investment value is the value of a property to a particular investor. In the U.S., it is equal to
market value for the investor who has the capacity to put the property to good use -- its highest-and-best-use, its most valuable use. For other investors with limited capacity or vision, investment value is lower because they cannot put the property to use in a way that is maximally productive.International Valuation Standards
The current edition of International Valuation Standards (IVS 2007) defines Investment Value in a way which allows for either a higher value than market value or a lower value than market value:
:"Investment Value or Worth" The value of property to a particular investor, or a class of investors, for identified investment objectives. This subjective concept relates specific property to a specific investor, group of investors, or entity with identifiable investment objectives and/or criteria [ [http://www.ivsc.org/pubs/exp_drafts/ivs2.pdf Exposure Draft of Proposed Revised International Valuation Standard 2 - Bases Other than Market Value, June, 2006] ] .
Investment Value is a subjective measure of value, a 'value-in-use', whilst Market Value is an objective 'value-in-exchange'. As defined in IVS2, Investment Value is the valuation equivalent of the accountancy concept of
Value-in-use . WhereasIFRS s define the accountancy concepts offair value and Value-in-use in operational terms, IVSs define Market Value and Investment Value by way of generalised definitions.References
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