Fair value

Fair value, also called fair price, is a concept used in finance and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or asset, taking into account such factors as:relative scarcityperceived utility (economist's term for subjective value based on personal needs)risk characteristics replacement costs, or costs of close substitutesproduction/distribution costs, including a cost of capital
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In the context of futures, the equilibrium price for futures contracts. Also called the theoretical futures price, which equals the spot price continuously compounded  at the cost of carry rate for some time interval. More generally, fair value for any asset simply refers to the perception that it is neither underpriced (too cheap) over overpriced (too expensive).