Definition
The price at which an asset would currently trade in an open market between a willing buyer and a willing seller. Market value can differ sharply from book value, which is based on historical cost, and it is the benchmark for rules such as lower of cost or market for inventory.
Example
A building bought for $400,000 with $150,000 of accumulated depreciation has a book value of $250,000, but its market value might be $600,000.