For an asset, cash equivalent value (CEV) is a measure of revenue that a firm receives from customers. More specifically, it is the cash amount for which an asset could be sold in the normal course of business as of current date. Initially, this amount is the exchange price between buyer and seller at the time of sale. However, if a firm has outstanding obligations, it will have to adjust the exchange price to reflect those outstanding obligations. Methods of adjustment include sales returns and sales discounts and allowances.

For a liability, cash equivalent value refers to the amount of cash that equals the present value of the future contractual payments discounted using the historical market interest for the indebted firm on the date the loan or obligation starts. In some cases, the borrower must figure out an implicit historical market interest rate by calculating the internal rate of return.

This value is sometimes called fair value (in a specific meaning) or cash value.