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Definition: Valuation is in business administration the process of determining the economic value of a business, asset, or investment. It involves analyzing financial data, market conditions, and future growth potential to estimate the worth of a company or asset. Valuation methods may include approaches such as discounted cash flow (DCF), comparable company analysis, or asset-based valuation. This process is crucial for decisions like mergers, acquisitions, investments, and financial reporting, helping stakeholders make informed choices based on the estimated value.
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