Valuation model
Plain definition. Company filings describe the valuation models they use in their fair value disclosures. In an SEC filing, one company says its Level 2 instruments are valued using models that are primarily industry-standard, with assumptions such as quoted forward prices for commodities, time value, volatility factors and current market and contractual prices.
Technical definition. A company filing with the SEC for the quarter ended June 30, 2016 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” It says Level 2 instruments are “valued using models or other valuation methodologies,” mainly “industry-standard models” whose assumptions include quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, and nearly all of these assumptions are observable in the marketplace. The same filing says the fair value of its warrants prior to the quarter ended December 31, 2014 was calculated using the Black-Scholes valuation model.
On this site
On this site, Valuation model comes up in Is future adoption already priced into XRP?, How can you build an XRP valuation model that isn’t a price target? and What does bank payment use imply per XRP, and what does the evidence support?.
Source
XML (sec.gov), read October 1, 2026.