What is market value in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: market value

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Current value of a transaction at the time of analysis. The market value is calculated from a market rate from the stock exchange, or is a theoretical value from a price calculator.

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• Key Concepts: 
  Market value is a term used in the FS-BA-PM-CR Credit Risk Management component of SAP. It is the estimated price of an asset or security if it were to be sold on the open market. Market value is determined by taking into account factors such as supply and demand, economic conditions, and the current market price of similar assets. 
  
  How to use it: 
  In the FS-BA-PM-CR Credit Risk Management component of SAP, market value can be used to assess the creditworthiness of a customer. By analyzing the market value of a customer’s assets, lenders can determine whether or not they are likely to be able to repay a loan. Market value can also be used to assess the risk associated with a particular investment. 
  
  Tips & Tricks: 
  When assessing the market value of an asset or security, it is important to consider all relevant factors. This includes not only supply and demand, but also economic conditions and the current market price of similar assets. Additionally, it is important to remember that market value is an estimate and may not reflect the actual price at which an asset or security could be sold. 
  
  Related Information: 
  For more information on market value and other terms related to credit risk management, please refer to SAP’s official documentation on FS-BA-PM-CR Credit Risk Management. Additionally, there are many online resources available that provide further information on this topic.