Definition: Valuation is the process of determining the fair value or market price for a company's assets and liabilities based on certain criteria, such as historical financial performance, industry standards, regulatory requirements, and other relevant factors. This involves assessing the current market conditions, considering future trends, and making estimates of the asset's expected future cash flows to arrive at an accurate valuation figure. Valuations are essential in valuing companies for investments, acquisitions, divestitures, and other transactions.
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