Valuation

Filed Under »
Dictionary Says

Definition of 'Valuation'

The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective. 
Investopedia Says

Investopedia explains 'Valuation'

For example, an analyst valuing a company may look at the company's management, the composition of its capital structure, prospect of future earnings, and market value of assets.

Judging the contributions of a company's management would be more of a subjective valuation technique, while calculating intrinsic value based on future earnings would be an objective technique.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Asset Valuation

    A method of ...
  2. Pre-Money Valuation

    A slang phrased ...
  3. Fundamental Analysis

    A method of ...
  4. Intrinsic Value

    1. The actual ...
  5. Market Value

    1. The current ...
  6. Asset-Based Approach

    A type of ...
  7. Oversold

    1. A condition ...
  8. Capital Structure

    A mix of a ...
  9. Royal Institution Of Chartered ...

    One of the ...
  10. Earnings Power Value - EPV

    A technique for ...

Articles Of Interest

  1. Using DCF In Biotech Valuation

    Valuing firms in this sector can seem like a black art, but there is a systematic way to pin a price on potential.
  2. Introduction To Fundamental Analysis

    Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
  3. How An IPO Is Valued

    The initial valuation of an IPO can determine the success or failure of a specific stock - but how is that price determined?
  4. Guide to Stock-Picking Strategies

    There are many ways to make money, knowing how to choose the best stocks is one of them.
  5. Efficient Market Hypothesis: Is The Stock Market Efficient?

    Deciding whether it's possible to attain above-average returns requires an understanding of EMH.
  6. Finding Profit In Troubled Stocks

    Find out the difference between a company capable of surviving a share-price beating and one that cannot.
  7. Pin Down Stock Price With Real Options

    How can you assign a value to what a company may do with its business in the future? We explain how it works.
  8. Equity Premiums: Looking Back And Looking Ahead

    If stocks become less profitable in the future, you may have to change your investment strategy.
  9. How does an IPO get valued?

  10. Venturing Into Early-Stage Growth Stocks

    Picking these potential winners is all about sizing up risk. We show you how.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center