1. Accounting: The monetary worth of an asset, business entity, good sold, service rendered, or liability or obligation acquired.
2. Economics: The worth of all the benefits and rights arising from ownership. Two types of economic value are (1) the utility of a good or service, and (2) power of a good or service to command other goods, services, or money, in voluntary exchange.
3. Marketing: The extent to which a good or service is perceived by its customer to meet his or her needs or wants, measured by customer's willingness to pay for it. It commonly depends more on the customer's perception of the worth of the product than on its intrinsic value.
Use 'value' in a Sentence
Marcie felt that she got good value from her economy car, because it had been inexpensive to purchase and was also cheap to run.
He placed a high value on loyalty, and only made friends with people who he thought exhibited it in all aspects.
When giving away promotional items at events, I tell my staff to say that the items are a gift, rather than free, because calling them free lessens the value of the item to the consumers.
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Notable Quotable
Create Value and Keep Some of It
"The challenge in business is twofold. First, create products or services with real value. Second, capture some of that value and pass the rest along to your users and partners. It's very difficult to make money long-term without providing genuine value for your users. But just providing them with value isn't enough to insure success. You also need to find a way to monetize your relationship with them, by taking keeping part of the value you've created."
Does Your Company Create Value?
"Your company's added value is the size of the pie minus the size the pie would be if your company didn't exist. Makers of interchangeable commodity products have almost no added value. If your company is the only one which I currently doing something, you may have a lot of value. If your company is the only one capable of doing something, you may have even more value."
Valuing Yourself Within a Company
"One way to look at the value of your company is the size of the pie with you minus the size of the pie without you. Commodity makers have almost no added value. If you're the only one currently doing something, you probably have a lot of value. If you're the only one capable of doing something, you probably have even more value."
What Counts Most in a Merger
"The language utilized in mergers tends to confuse the issues and encourage irrational actions by managers. For example, dilution is usually carefully calculated on a pro forma basis for both book value and current earnings per share. Particular emphasis is given to the latter item. When that calculation is negative (dilutive) from the acquiring company's standpoint, a justifying explanation will be made (internally, if not elsewhere) that the lines will cross favorably at some point in the future. The attention given this form of dilution is overdone: current earnings per share (or even earnings per share of the next few years) are an important variable in most business valuations, but far from all powerful. What really counts is whether a merger is dilutive or anti-dilutive in terms of intrinsic business value (a judgment involving consideration of many variables)."