Remember that missive about beauty existing in the opinioned eye of the beholder? Yeah.
Well, "value" works the same way. Anything...a house listed for $3 million on Zillow, a private company asking for $32 from new investors in its stock, a liver listed for $18,000 on eBay...they're all asks. They're asks from the market to then put a value on them.
Are they overvalued? Undervalued? We don't know, and won't know until that market is tested and a deal is then consummated. Then we can yay or nay the notion that the house we thought was worth $3 million (the one we spent all that money on to have the awesome water slide at the front door) was really worth that amount, or whether the highest price the market would pay was $572,500. Maybe that home's a bargain at the price?
See: Value Investor.
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