what is the market approach 
the market approach is a method of determining the value of an asset based on the selling price of similar assets it is one of three popular valuation methods along with the cost approach and discounted cash flow analysis dcf regardless of the type of asset being valued the market approach studies recent sales of similar assets making adjustments for the differences between them for example when appraising real estate adjustments might be made for factors such as the square footage of the unit the age and location of the building and its amenities because the market approach relies on comparisons to similar assets it is most useful when there is substantial data available regarding recent sales of comparable assets 