A valuation is defined as the process of determining the current worth of an asset or company.
| Valuation | Valuation is the analytical process of determining the current (or projected) worth of an asset or a company. There are many techniques used for doing a valuation. An analyst placing a value on a company looks at the business's management, the composition of its capital structure, the prospect of future earnings, and the market value of its assets, among other metrics.
Fundamental analysis is often employed in valuation, although several other methods may be employed such as the capital asset pricing model (CAPM) or the dividend discount model (DDM). | Read More » | Earnings Per Share – EPS | Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. | Read More » | | Absolute Value | Absolute value is a business valuation method that uses discounted cash flow analysis to determine a company's financial worth | Read More » | | Relative Valuation Model | A relative valuation model is a business valuation method that compares a firm's value to that of its competitors to determine the firm's financial worth. | Read More » | | | | | CONNECT WITH INVESTOPEDIA | | | | | |