How is the value of a players calculated

Can someone explain to me how the monetary value of a player calculated, is it based on the value of the players contract at all? I have noticed that even though my players in the championship have CAs of over 120 their value is only listed as being 50k or 100k, shouldn't players with CAs of over 120 be worth around 500k+ given that they are young players.

It depends on all sorts of things, including the clubs reputation. And yes, length and value of a player's contract would effect it too.

also any recent transfer activity involing said player

The base value is set to whatever the player was bought for, and then his "real" value gradually takes over.

The most important factor in the calculation is the club's reputation. The club's reputation is heavily influenced by the league's reputation, and both in turn influence the player's reputation. The player's wage demands are heavily influenced by the league's (and club's) reputation. The overall value of the contract is then added to the calculation, but it is unlikely that this is done on a 1-to-1 basis.

Giving a player a new contract won't instantly increase his base value unless it has dropped because the contract expires soon.

So:

1. The league's base reputation

influences

2. The club's base reputation

influences

3. The player's base reputation

So if a player's reputation is very high (world class talent for instance) but he is contracted to a small club in a small league, his base value won't be as high as a much less reputed player in one of the biggest clubs in one of the biggest leagues.

The base value is set to whatever the player was bought for, and then his "real" value gradually takes over.

The most important factor in the calculation is the club's reputation. The club's reputation is heavily influenced by the league's reputation, and both in turn influence the player's reputation. The player's wage demands are heavily influenced by the league's (and club's) reputation. The overall value of the contract is then added to the calculation, but it is unlikely that this is done on a 1-to-1 basis.

Giving a player a new contract won't instantly increase his base value unless it has dropped because the contract expires soon.

So:

1. The league's base reputation

influences

2. The club's base reputation

influences

3. The player's base reputation

So if a player's reputation is very high (world class talent for instance) but he is contracted to a small club in a small league, his base value won't be as high as a much less reputed player in one of the biggest clubs in one of the biggest leagues.

Thanks for the feedback, I was curious as I have a bunch of good players in my newport county side which is now in the championship and their value really isn't as high as it should be.

Value really should be removed. It is useless as hardly any players sell for their value (usually lower or higher), and it can be used to cheat in spotting wonderkid regens at lower league sides.

It should be based solely on ability + performance/potential.

It should be based solely on ability + performance/potential.

That would be unrealistic. A wonderkid at Manchester United would cost a lot more in transfer fees than if he played in a League Two club with the same wages and contracct length.

Value really should be removed. It is useless as hardly any players sell for their value (usually lower or higher), and it can be used to cheat in spotting wonderkid regens at lower league sides.

I agree with that. I've there is a market value in the game it should not bei affected by the potential ability. I would prefer a game without mv. To see how much money a team want for a player, i've to make an enquiry and send my scouts out to judge how much money i've to spend for a player.