Understanding What A Valuation Is

A Valuation is the process of determining the present value of an asset. It is deciding how much an asset, company, or anything else is worth. Valuation is partially objective and subjective and results in wide disparities for the values of most assets. Valuation can sometimes mean determining a fixed amount and it can also mean estimating future worth. When it comes to securities, valuation is the process of placing a value on a stock based on the market value of the issuer's assets and the outlook for its earnings. Valuation is usually calculated using Price/Earnings Ration (P/E). Asset valuation is done periodically when determining the value of real estate, a portfolio, an investment or an item on a balance sheet. To learn more about valuations click on the pictures below to read the articles.