Valuation
An estimate of what an asset is worth, whether from multiples such as P/E, from discounted future cash flows, or from comparison with similar assets.
Also called valuations · overvalued · undervalued
An estimate of what an asset is worth, whether from multiples such as P/E, from discounted future cash flows, or from comparison with similar assets.
Why it matters
Every valuation is a set of assumptions. Two careful analysts can value the same company very differently and both be reasonable.
Related terms
- P/E Ratio
- Market Capitalisation
- Fundamental Analysis
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