Investment Value
Definition
The value of a company to a specific investor, reflecting that investor's particular strategic objectives, portfolio synergies, and return expectations. Investment value is distinct from fair market value, which reflects the consensus of a hypothetical willing buyer and seller. A strategic investor may assign a higher investment value to a company than the fair market value implies because of specific synergies not available to other buyers.
Common Misapplication
The most common misapplication is presenting a valuation derived from investment value analysis as if it represents fair market value. Investment value is specific to the investor; fair market value is the standard for option pricing, reporting, and independent assessment.
FFI Standard Reference
This term is defined and applied in Book 4, Section 4.1: The Valuation Methodology Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Investment Value. https://ffistandard.org/glossary/investment-value/. 2026.