What is current value?

The current value is the present value of an asset, such as a securities portfolio, calculated based on the most recent prices or market prices. This gives an accurate picture of what the asset is worth at the moment, as opposed to historical value or purchase value, which are based on previous prices.

The current value is crucial for investors and companies to gain a realistic insight into the true value of their assets, especially when decisions have to be made about sale, investment or revaluation. However, it is not the same as present value, which reflects the future value of cash flows at a certain return or interest rate.

Similar terms:

• Market value: The price that an item or asset would yield on the open market.
• Daily value: The value of an asset on a specific day, often used in the insurance industry.
• Fair value: The price at which an asset would be traded between market participants under normal circumstances.

The term current value is essential in various financial contexts, including the valuation of assets, the preparation of balance sheets, and the making of investment decisions, where it is important to take into account the context and specific market conditions.