Final answer:
Qualitative valuation is the asset valuation approach that uses categorical or non-numeric values instead of absolute numerical measures.
Step-by-step explanation:
The asset valuation approach that uses categorical or non-numeric values rather than absolute numerical measures is called qualitative valuation. This method allows decision makers to assign subjective values to assets based on their qualitative characteristics and attributes.
For example, in the context of a business, qualitative valuation can be used to assess the value of a company's brand reputation, customer loyalty, or employee morale. These factors may not have precise numerical values, but they can still have a significant impact on a company's overall worth.
Qualitative valuation is particularly useful when dealing with intangible assets or factors that are difficult to quantify. It helps decision makers make informed choices by considering both quantitative and qualitative aspects of the assets being evaluated.