Liquidation Value

The total worth of a company's physical assets when it goes out of business or if it were to go out of business. Liquidation value is determined by assets such as the real estate, fixtures, equipment and inventory a company owns. Intangible assets are not included in a company's liquidation value. Intangible assets include a business's intellectual property, goodwill and brand recognition.

If a company were to be sold rather than liquidated, both liquidation value and intangible assets would be considered to determine the company's going-concern value. Value investors will look at the difference between a company's market capitalization and its going-concern value to determine whether the company's stock is currently a good buy.

Liquidation value can also refer to the cash value of a single asset.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Liquidation value — is the likely price of an asset when it is allowed insufficient time to sell on the open market, thereby reducing its exposure to potential buyers. Liquidation value is typically lower than fair market value. Unlike cash or securities, certain… …   Wikipedia

  • liquidation value — the aggregate value of a business if its assets are sold piecemeal (Glossary of Common Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • liquidation value — likvidacinė vertė statusas Aprobuotas sritis buhalterinė apskaita ir finansinė atskaitomybė apibrėžtis Suma, kurią pasibaigus naudingo tarnavimo laikui tikimasi gauti už turtą, įvertinus būsimas likvidavimo ar perleidimo išlaidas. atitikmenys:… …   Lithuanian dictionary (lietuvių žodynas)

  • liquidation value — likvidacinė vertė statusas T sritis turto vertinimas apibrėžtis Galutinė suma, kuri būtų gauta verslo subjektui nutraukus veiklą ir jo turtą pardavus dalimis. Turėtų būti nurodomi vertės nustatymo pagrindai ir papildomos prielaidos dėl sąlygų.… …   Lithuanian dictionary (lietuvių žodynas)

  • liquidation value — worth of an asset at the time of liquidation, cash value of an asset at the time of selling …   English contemporary dictionary

  • Liquidation value — Net amount that could be realized by selling the assets of a firm after paying the debt. The New York Times Financial Glossary …   Financial and business terms

  • liquidation value — net amount that could be realized by selling the assets of a firm after paying the debt. Bloomberg Financial Dictionary …   Financial and business terms

  • liquidation value — Fin the amount of money that a quick sale of all of a company’s assets would yield …   The ultimate business dictionary

  • Ликвидационная стоимость (LIQUIDATION VALUE, SALVAGE VALUE, ABANDONMENT VALUE)  — 1 Стоимость, которая может быть получена в результате ликвидации актива.  2 Ликвидационной стоимостью объекта оценки признается стоимость объекта оценки в случае, если объект оценки должен быть отчужден в срок меньше обычного срока экспозиции… …   Словарь терминов по управленческому учету

  • value — The utility of an object in satisfying, directly or indirectly, the needs or desires of human beings, called by economists value in use, or its worth consisting in the power of purchasing other objects, called value in exchange. Joint Highway… …   Black's law dictionary

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