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  2. Dictionary

    val·u·a·tion
    [ˌvalyəˈwāSHən]
    noun
    valuation (noun) · valuations (plural noun)
    1. an estimation of something's worth, especially one carried out by a professional appraiser:
      "it is wise to obtain an independent valuation"
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    What is valuation in finance?In finance, valuation is the process of determining the value of a (potential) investment, asset, or security. Generally, there are three approaches taken, namely discounted cashflow valuation, relative valuation, and contingent claim valuation.
    Why does a company need a valuation?This is done so for a variety of reasons, such as bringing on investors, selling the company, purchasing the company, selling off assets or portions of the business, the exit of a partner, or inheritance purposes. Valuation is the process of determining the worth of an asset or company.
    What is asset valuation?Asset valuation simply pertains to the process to determine the value of a specific property, including stocks, options, bonds, buildings, machinery, or land, that is conducted usually when a company or asset is to be sold, insured, or taken over. The assets may be categorized into tangible and intangible assets.
    What is a company valuation?During the valuation process, all areas of a business are analyzed to determine its worth and the worth of its departments or units. A company valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership, taxation, and even divorce proceedings.
     
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