Valuation, at its purest, is the act of placing a value or worth on an asset. Stock analysts determine an equity's value based on its earnings outlook, market value, and other economic variables. Public companies are typically easier to value than private ones due to availability of data. As a practice, valuation is a combination of art and science and can be more difficult for non-public companies. The three most common approaches to company valuation are valuing company or business income, market, and asset-based approaches.
Sponsored Links