Company Valuation

Company valuation is the process of determining the economic worth of a business. It involves analyzing factors like revenue, profits, assets, market conditions, and growth potential to estimate how much the company is worth. Valuations are used for various purposes, such as selling the business, securing investment, or merging with another company. Different methods, like comparing similar companies or calculating future earnings, help derive a fair estimated value. Essentially, valuation provides a professional judgment of a company's financial health and potential, helping stakeholders make informed decisions.