Actual value refers to the true worth of an asset, item, or property based on its current market conditions and intrinsic qualities. It is determined by various factors, including demand, supply, and the item's condition. For example, the actual value of a house may differ from its listed price, reflecting what buyers are willing to pay. In finance, actual value is crucial for making informed decisions. Investors assess the actual value of stocks or bonds to determine if they are overvalued or undervalued. Understanding actual value helps individuals and businesses make better choices regarding purchases, investments, and sales.