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Glossary / finance terms

Residual value

An estimate of what an asset will be worth at a specified future date on a stated valuation basis.

Why the distinction matters

Specify generation, configuration, age, condition and sale assumptions. Accounting book value, asking price and net realisable cash answer different questions.

Read the structure

What a value floor can cover, and the recovery risks that can remain.

Residual value guarantees and GPU exit risk ↗

For in-house counsel

Take it to the documents

The filed wording behind GPU and data centre financings, for either side of the table. Previews are open; the full text is free with InfraCompute Weekly.

Related terms

Explanatory definition, not a statement that a particular transaction contains this term or a substitute for its contractual definition.

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Randeep Bubbra

InfraCompute Weekly

The week in compute finance, read from the filings.

Deals, terms and the clauses behind them, for the people financing data centres, GPU clouds and the power behind them. By Randeep Bubbra.

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