fair market value

noun

: a price at which buyers and sellers with a reasonable knowledge of pertinent facts and not acting under any compulsion are willing to do business

Examples of fair market value in a Sentence

Recent Examples on the Web

Families that sell near fair market value can minimize capital gains tax, advisors say. — Sharon Epperson,stephanie Dhue, CNBC, 6 Aug. 2026

Because alternative minimum tax exposure is driven largely by the spread between exercise price and fair market value, lower prices can substantially reduce the tax cost of beginning the long-term holding period. — Anastasia Atamanchuk, Fortune, 5 Aug. 2026

The higher cost could be the ongoing expenses required to sell food at 30% under fair market value. — Nathan Goldman, Forbes.com, 28 July 2026

After July 2034, based on the performance of the NFL assets, Disney may have the right to reacquire the NFL’s interest in ESPN in exchange for a 10-year security at 70% of the then-fair market value of the NFL’s interest in ESPN. — Todd Spangler, Variety, 21 July 2026

Word History

First Known Use

1891, in the meaning defined above

Rhymes for fair market value

• eigenvalue
• undervalue

Legal Definition

fair market value

noun

: a price at which buyers and sellers both having reasonable knowledge of the property and being under no compulsion are willing to do business