liquidation value

Definition

The estimated amount of money that an asset or company could quickly be sold for, such as if it were to go out of business. If the liquidation value per share for a company is greater than the current share price, then it usually means that the company should go out of business (or that the market is misvaluing the stock), although this is uncommon.

Use liquidation value in a sentence

The liquidation value was really good for us and we were glad because it meant everyone would be okay in our company.

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The company's liquidation value was so low that they would be at a disadvantage both to stay in business, and to go out of business.

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Sometimes, life does not go according to plan. A smart real-estate investor will be aware of the LIQUIDATION VALUE of his properties just in case he needs to have cash on hand to pay for unexpected expenses.

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