What is fair market value in SAP PA-EC - Enterprise Compensation Management?

SAP Term: fair market value

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: The price of the stock underlying a stock option that is part of an LTI plan, based on the current market value.

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• Key Concepts: 
  Fair market value (FMV) is a term used in SAP's Enterprise Compensation Management (PA-EC) component to refer to the estimated market value of a particular asset or service. It is used to determine the amount of compensation that should be paid for a particular asset or service. 
  
  How to use it: 
  In order to use FMV in SAP's PA-EC component, the user must first determine the estimated market value of the asset or service in question. This can be done by researching similar assets or services and their respective market values. Once the FMV has been determined, it can then be used to calculate the amount of compensation that should be paid for the asset or service. 
  
  Tips & Tricks: 
  When determining the FMV of an asset or service, it is important to consider factors such as supply and demand, current market trends, and other relevant factors. Additionally, it is important to ensure that the FMV is updated regularly in order to ensure that it accurately reflects current market conditions. 
  
  Related Information: 
  For more information on SAP's PA-EC component and how to use FMV, please refer to SAP's official documentation on Enterprise Compensation Management.