The formula to calculate the valuation percentage (VP) is:
\[ VP = \frac{CV}{HV} \times 100 \]
Where:
The valuation percentage is a measure of the current value of an asset compared to its historical or maximum value. It is calculated by dividing the current valuation by the historical valuation and then multiplying by 100. This metric helps in understanding the relative value of an asset over time.
Let's assume the following values:
Using the formula to calculate the valuation percentage (VP):
\[ VP = \frac{CV}{HV} \times 100 = \frac{150,000}{200,000} \times 100 = 75\% \]
The Valuation Percentage (VP) is 75%.