Valuation, Financial Management

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Valuation

The process of finding out the current value of an asset or company is known as valuation. There are various techniques that can be utilized to find value, few are subjective and others are objective. 

For instance, an analyst valuing a company can look at the company's management, prospect of future earnings, the composition of its capital structure, and market value of assets.

Evaluating the contributions of a company's management will be more of a subjective valuation method, whereas calculating intrinsic value on the basis of future earnings would be an objective method.

 

 


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