Replacement cost method - How To Discuss
Emily Cortez
Updated on September 03, 2026
Replacement cost method,
Definition of Replacement cost method:
Business valuation method in which its replacement cost (instead of its liquidation value) is considered which is usually higher than the book value (because depreciation is not taken into account). Liabilities are deducted from the replacement cost to arrive at the value of the business. Also called replacement value method.
Meaning of Replacement cost method & Replacement cost method Definition