How to calculate value?

[psilocybin]

A little query on how to determine value (hope this doesn't sound primative). An example: I have 2 possible bets on a game. The odds on the draw is 2.90. My estimated odds are 2.30. The odds on under 2.5 goals is 1.56. My estimated odds on under 2.5 goals is 1.36. Which bet will return more profit on any given day or in the long term. Does anyone know a way to calculate the value for these scenarios? Is the following formula correct: Value = (Actual odds - Estimated odds) * (1 / Estimated odds) * 100 This would give: For draw: value = (2.90 - 2.30) * (1 / 2.30) * 100 = 26% For under 2.5 goals: value = (1.56 - 1.36) * (1 / 1.36) = 15% Any thoughts appreciated!

[PAULM03]

Re: How to calculate value? I just divide estimated by actual. This would give a result in your first example of 1.26 or an 'edge' of 26%. Exactly the same result as your calculation but quicker.