Valuation methods are techniques used to determine the economic value of an asset, company, or investment. They provide a framework for assessing worth, guiding investment decisions, and facilitating transactions in financial markets.

Valuation Methods

Valuation methods

Economic value represents the worth of a good or service determined by its ability to generate benefits or utility to individuals and society, often reflected in market prices. It is a crucial concept for decision-making in resource allocation, investment, and policy formulation, as it helps prioritize actions based on their contributions to overall well-being and economic efficiency.

economic value

Asset valuation is the process of determining the fair market value of an asset, which is crucial for investment analysis, financial reporting, and merger and acquisition decisions. It involves various methodologies and considerations, such as market conditions, asset characteristics, and economic factors, to ensure accurate and reliable valuations.

Asset Valuation

Company Valuation

Investment valuation is the process of determining the intrinsic value of an asset or a company to assess its worthiness as an investment. It involves analyzing financial metrics, market conditions, and economic factors to make informed decisions about buying, holding, or selling investments.

Investment Valuation

framework for assessing worth

guiding investment decisions

facilitating transactions

Financial markets are platforms where individuals and institutions can trade financial securities, commodities, and other fungible items at prices that reflect supply and demand. They play a crucial role in the economy by facilitating liquidity, price discovery, and the efficient allocation of resources.

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