Valuation Models

Valuation models are tools used to estimate the worth of an asset, company, or investment. They analyze financial data, market conditions, and future growth prospects to determine a fair value. Common methods include discounted cash flow (DCF), which projects future earnings and discounts them to present value, and comparables, which compare the asset to similar entities. These models help investors, analysts, and managers make informed decisions by providing an estimate of value based on quantitative analysis. Ultimately, valuation models aim to reflect what an asset is truly worth in a given market context.