Appraisal vs Valuation vs Residual Forecast
Which one your credit committee needs.
The short answer
An appraisal values the equipment on defined premises, such as fair market and orderly liquidation value, as of one date, for the credit file. A valuation is the broader estimate, repeated through a loan or a fund's life for loan-to-value tests, borrowing bases and fair value marks. A residual forecast estimates values at future dates, for lease residuals and residual value insurance.
Side by side
| Report | Question it answers | As of | Typical user | What it rests on |
|---|---|---|---|---|
| Appraisal | What is the equipment worth on each premise of value? | One stated date, usually closing | Lenders and credit committees at underwriting | Completed sales, the quote and bill of materials, the ASA value definitions; an inspection when scoped |
| Valuation | What is the collateral worth at this test or reporting date? | Each test or reporting date, often monthly or quarterly | Lenders testing loan-to-value and borrowing bases; funds and lessors marking to fair value | The same sale data, refreshed; for fair value, an exit price between market participants |
| Residual forecast | What will it be worth when the loan or lease ends? | Future dates: payment dates, covenant tests, a balloon, lease end | Lessors booking a residual, lenders setting the advance rate, residual value insurance | Residual bands by calendar year from realized resale prices, age measured from when the generation first shipped |
Appraisal
An appraisal states what the equipment is worth on defined premises, as of one date. Our appraisals give fair market value, orderly and forced liquidation values and remaining useful life, using the American Society of Appraisers definitions. FMV vs OLV vs FLV explains each one with GPU examples.
It belongs in the credit file at underwriting. Bank examiners expect a collateral appraisal during underwriting to help set the borrowing base and advance rates. For GPUs that means completed sales. Dealer asks for a used H100 SXM ran 1.16x the realized price in the October 2026 Rack Report. USPAP-compliant reports are available on request.
Sources: American Compute, American Society of Appraisers, Office of the Comptroller of the Currency.
Valuation
A valuation is the broader estimate, and it repeats. Lenders re-mark collateral during a loan for loan-to-value covenants and borrowing bases; examiners expect updated appraisals through the life of a loan, more often as issues arise.
Funds and lessors that report at fair value mark their equipment each period, often quarterly. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. For GPUs that again points to realized sales, not dealer asks.
We mark GPU collateral monthly or quarterly from the same sale data, for loan-to-value tests, borrowing bases and fund marks. See GPU valuations.
Sources: Office of the Comptroller of the Currency, Deloitte Accounting Research Tool (DART).
Residual forecast
A residual forecast looks forward. It estimates value at the dates that matter to the deal: payment dates, covenant tests, a balloon, lease end. For the lessor, the residual is booked into a fair market value lease on day one; for the lender, it sets the advance rate and the recovery math.
We publish residual bands by calendar year for B300, B200, H200 and H100, with age measured from when each generation first shipped. See residual values by year.
A forecast can be insured. Residual value insurance puts an insured floor under the resale value. If eligible equipment sells below the floor at a covered trigger date, the policy pays the shortfall, subject to its terms, limits and exclusions.
Sources: American Compute.
Which one your credit committee needs
- Closing a loan or lease
- An appraisal, with fair market, orderly and forced liquidation values and remaining useful life as of closing.
- During the term
- A valuation at each loan-to-value test or borrowing base date, on the same premise as the appraisal.
- Fund reporting
- A fair value mark each reporting period.
- Lease end, balloon or insurance
- A residual forecast at each of those dates, given as conservative and moderate bands.
Sources: American Compute.
Related pages
Discuss a transaction
Send us the equipment list and the loan or lease you have in mind. We will come back with an indication and the questions we would need answered.
Prefer email? hello@amcompute.com
Questions
- What is the difference between an appraisal and a valuation?
- An appraisal states values on defined premises, such as fair market and orderly liquidation value, as of one date, for the credit file. Valuation is the broader term. It covers any estimate of value, including the collateral and fair value marks a lender or fund repeats every month or quarter.
- What is collateral valuation?
- Valuing the assets that secure a loan, at closing and again during the term, so loan-to-value covenants and the borrowing base track what the collateral would sell for. Bank examiners expect updated appraisals through the life of a loan.
- What is in a GPU valuation report?
- Our reports give fair market, orderly and forced liquidation values, remaining useful life and residual curves across the term, with severity-rated findings scoped to your risks.
- Is a residual forecast an appraisal?
- No. An appraisal values the equipment as of a date. A residual forecast estimates values at future dates, as bands, for lessors, lenders and residual value insurance.