Market Value

The estimated amount for which a property should exchange on the date of valuation
between a willing buyer and a willing seller in an arms-length transaction after proper
marketing wherein the parties had each acted knowledgeably, prudently, and without
compulsion.

Market Price
The price or an amount at which both seller and buyer agreed for transaction. The market
price is the current price at which an asset or service can be bought or sold.

Cost
The amount of money that is required to produce or obtain something.

*Market value and market price are equal only under conditions of market efficiency and
equilibrium.

BASIS FOR
COMPARISON

PRICE

COST

VALUE

Meaning

Price is the amount

paid for acquiring
any product or
service.

Cost is the amount

incurred in
producing and
maintaining
something.

Value is the utility

of a good or service.

Ascertainment

Price is ascertained
from the consumer's
perspective.

Cost is ascertained
from the producer's
perspective.

Value is ascertained
from the user's
perspective.

Estimation

Through price
policy

Through
expenditure incurred
during production

Through opinion

Impact of variations
in market
Money

Prices of product
increase or decrease
It can be calculated
in terms of money

Cost of inputs rise

or fall
It can also be
calculated in terms
of money

Value remains
unchanged
It is not calculated
in terms of money