The "market approach" is a method used to determine the value of an asset by comparing it to similar assets that have recently been sold. This approach relies on the principle of substitution, which suggests that a buyer will not pay more for an asset than the cost of acquiring a comparable one. It is commonly used in real estate and business valuations. In the market approach, data from comparable sales, known as comps, is analyzed to establish a fair market value. Factors such as location, size, and condition are considered to ensure accurate comparisons. This method is particularly useful in active markets where sufficient data is available.