MARKET APPROACH

Method of valuing the appraisal value of an asset, instrument, or business interest, using the selling price of similar assets. The method can be utilized to compute the value of property or part of the assessment process for a closely held business. Also, it can be used to get the value of a business ownership interest, intangible asset, or security. Regardless of what asset, it examines the recent sales of same assets, making appropriate adjustments for differences in quality, quantity, or size.

Also known as market based approach or market comparison approach.