Business, Legal & Accounting Glossary

Definition: Value


Full Definition of Value

Value is a measurement of the monetary utility return of a product. It is a subjective term that has value to one party may have no value to another. Value is described as desirability, utility or worth. Alternatively, the value may describe the worth of the desired object compared to other objects or conditions. Economic values are expressed as a ‘quantity’ of commodity or condition, a person or an organization would surrender in exchange for another wanted commodity or condition.

Nominal Value

It is the expressed value of issued security, which remains fixed. The market value of the security, however, fluctuates. In case of fixed income securities, nominal value is also known as face value. In the case of capital goods, the nominal value is also known as book value.

Value Investing

It is a scheme of picking out stocks that trade below their intrinsic values. Investors interested in value investing, search for company stocks that they believe are undervalued. Value investors generally buy stocks when the stock price is deflated. They are especially attracted towards stocks that exhibit lower than average price-to-earnings or price-to-book ratios and high dividend yields.

Intrinsic Value

It is the actual value of a company as assessed by taking into consideration both tangible and intangible factors. All aspects of the business are considered before calculating a stock’s intrinsic value. The intrinsic value may not match the current market valuation of the business. Investors show interest when the intrinsic value of a specific company exceeds the current market value.

Time Value

It is a component of the option premium that is referable to the quantum of time that remains until the option contract expires. It is the value of a specific stock other than its intrinsic value.

Value Chain

It is a model of how companies obtain raw materials for input, the process of value addition to the raw materials by different processes, and the retailing of completed, saleable products to clients. Aim of the value chain model is to impart maximum value at minimum expense.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Value. Payroll & Accounting Heaven Ltd. November 30, 2021
Chicago Manual of Style (CMS):
Value. Payroll & Accounting Heaven Ltd. (accessed: November 30, 2021).
American Psychological Association (APA):
Value. Retrieved November 30, 2021, from website:

Definition Sources

Definitions for Value are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th March, 2020 | 9 Views.