What is residual value?
A property’s expected value at the end of a holding period or lease term. Driven by the real-estate market, it carries different risk than a firm’s operating cash flows and is evaluated against a real-estate required return.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.