A formal process of determining the value of an asset. The appraised value is a key determining factor of the loan size in secured financing. With real estate, the estimated value of real property is based on replacement cost, sales of comparable property, or expected future income from income producing property. Business appraisals depend on gross revenue, EBIDTA, industry type, and comparables to similar businesses across different states. Other factors are location ( retail business), quality of clients (IT staffing companies and other businesses having A/R)and revenue distribution across different clients.