Valuation Model

A valuation model is a method used to estimate the worth of an asset, company, or investment. It analyzes various factors like financial performance, future growth potential, and market conditions to determine a fair value. Think of it as a structured way to assess how much something is genuinely worth today and in the future, helping investors and businesses make informed decisions about buying, selling, or investing. Different models may focus on profits, assets, or market trends to arrive at this estimate.