Basic Valuation Concept in Finance

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VALUATION

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.
Valuation is the process of determining the worth of an asset or company.
Valuation is important because it provides prospective buyers with an idea of how
much...
A valuation is an estimate of how much a business, property, antique or any asset
is worth. If you have a business and seek funding from investors, they will need to
know how much your enterprise is worth. This is achieved through a valuation –
an estimate of the company’s overall worth.
Valuation is the process of determining the theoretically correct value of a
company, investment, or asset, as opposed to its cost or current market value.

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