The method of determining the market value of works of art is known as art valuation, a subset of financial valuation that is particular to the art world.

As a result, it is more of a financial than an aesthetic problem, however individual perspectives on cultural value are nevertheless important. A value for an artwork is determined by comparing information from several sources, including art auction houses, private and corporate collectors, curators, art dealer operations, gallerists (owners of galleries), knowledgeable advisors, and professional market analysts.

In addition to collecting, investing, selling, and financing artwork, estate appraisals, charitable contributions, tax planning, insurance, and loan collateral all require art valuation.

Estimating market demand, determining the works' quality and provenance, the ability of lots, artists, and works to be liquidated, as well as valuation trends like average selling prices and mean estimations, are all aspects of the art valuation process.

Like other markets, the art market has its own terms of art or vocabulary that are industry-specific. For instance, the term "bought-in" describes the unfavourable situation that arises when a work or lot at auction is returned to its owner after being passed over, withdrawn, or in some other way unsold.

When a work of art is to be used as collateral, it is also required to value it.

Similar to the housing market, "comparables" are used to gauge how much demand similar goods have right now. The art market makes it crucial that the comparables are current.