Value at the individual level is strictly personal. But as more buyers for the same item come into play the price of the item begins to stabilize. If there are hundreds of thousands of buyers, the price reaches a high level of consistency or what is called ‘Fair Market Value’.
Asset-based valuation is a financial approach utilizing one of three methods or combination of 1) Modified Book Value, 2) Replacement Value and/or 3) Liquidation Value. Asset-based valuation is one of several different business valuation methods.