Valuation


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Valuation

Determination of the value of a company's stock based on earnings and the market value of assets.

Valuation

The process of determining how much an asset, company, or anything else is worth. Valuation is highly subjective, but it is easiest when one is considering the current value of tangible assets. For example, determining how much a willing buyer will pay a willing seller for a house right now is easier than determining the value of what a company's brand recognition might be in 10 years. Valuation is important in fundamental analysis, the practitioners of which usually consider a company's earnings to be indicative of its value.

valuation

A process for calculating the monetary value of an asset. Valuation is subjective and results in wide disparities for the values of most assets.

Valuation.

Valuation is the process of estimating the value, or worth, of an asset or investment.

Sometimes it means determining a fixed amount, such as establishing the value of your estate after your death. Other times, valuation means estimating future worth.

For example, fundamental stock analysts estimate the outlook for a company's stock by looking at data such as the stock's price-to-earnings (P/E), price-to-sales, and price-to-book (net asset value) ratios.

In general, a company with a high P/E is considered overvalued, and a company with a low P/E is considered undervalued.

valuation

(1) The process of estimating the worth of something. (2) The estimated worth given to something.

References in periodicals archive ?
ISBA developed and implemented the Business Valuation Gold Seal of Trust to identify and differentiate the levels of exemplary standards and best practices, to preserve the public trust, and to educate the client as to which firms uphold the highest professional standards.
8220;Bill is the kind of dynamic professional that will allow First Valuation to become a market leader in valuation technology,” said First Valuation CEO Walt Coats.
The material is divided into nine sections for ease of use: Introduction, Reasons for the Valuation and Premise, Standards of Value, Valuation Analysis, Valuation Methods, Discounts and Premiums, Valuation Conclusions, Valuation Report, and an International Glossary of Business Valuation Terms.
The statement allows for two types of engagements: the valuation engagement and the calculation engagement.
For more information about the AICPA's proposed valuation standard, see this month's CPA Letter public accounting supplements (access instructions appear on page 2).
Founded in 2002, Avail has significant experience advising companies across a wide range of industries and has a particular depth of capabilities in real estate valuation, equipment valuation, cost segregation and business valuation.
This item discusses the facts of Capital Blue Cross and the decision's significance as to the broader valuation issue.
Business valuation encompasses both science and art.
Reasonable in theory, valuation discounts sparked IRS scrutiny--and for good reason.
Transaction-Based Valuation Approach: Towards a Permanent Solution
The new site also carries: the BIZCOMPS ($395) database of transactional information on "Main Street" businesses for the last ten years; FMV Restricted Stock Study ($499), a new tool for quantifying marketability discounts; and, Valuation Advisor's Lack of Marketability Discount Study ($399), a new empirical tool for determining the marketability discount in business valuations.
The eight-page quarterly economic report, aimed at business evaluation analysts, conveys permission to subscribers to include major sections in their business valuation reports--with attribution, of course.