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.
In 2006, Bill's expertise was critical in the development and integration of a valuation application that was approved by Freddie Mac.
CPAs perform valuation services for numerous purposes, including transactions, financings, taxation planning and compliance, intergenerational wealth transfer, ownership transition, financial accounting, bankruptcy, management information, and planning and litigation support.
Hopefully, as an offshoot to these Congressional hearings, specific facade preservation easement appraisal standards will be established requiring qualified real estate appraisers to meet specialized professional educational guidelines that have been specifically developed for facade preservation easement valuations.
The Third Circuit's discussion applies more broadly, to the valuation of intangible assets in general and the taxpayer's burden of proving valuation.
The "science" of valuation is grounded in academia and based on the application of three generally accepted valuation approaches: the income approach, the market approach and the cost approach.
Yet, when carefully structured and managed, FLPs remain a viable strategy, says Garsson, who cites arbitrary valuations, partnerships in name only, and poor management as huge red flags.
The site carries a wide variety of subscription services, including (with annual subscription prices): Shannon Pratt's Business Valuation Update ($229) monthly newsletter; BVLaw ($225), a database of court cases, statutes, IRS materials, and briefs and valuation reports; BVPapers ($225), a database of restricted stock and pre-IPO study papers; Economic Outlook Update ($225), a quarterly report on indicators, consumer prices, inflation and interest rates, unemployment figures and related data; Pratt's Stats ($495), a database of company sale data on private business sale transactions for deals under $100 million; and, Pratt's Stats Public Company ($495), a similar financial information database covering public company transactions.
Shannon Pratt, managing owner of Business Valuation Resources LLC, recently launched the Economic Outlook Update on its own after having published it since 2002 as a quarterly update included with Shannon Pratt's Business Valuation Update.
The purpose of this article is to cast light on the competing forces at work in valuations, rather than to divine the "correct" answer.
in Seattle, a firm specializing in business valuations and litigation support.
However, if you don't have corporate finance and valuation experience, don't attempt to practice in this area; rather, make a corporate financial consultant part of your outside adviser team.