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Valuation

What is Valuation?

Valuation is the process of estimating what a company or asset is worth, using methods such as earnings multiples, discounted cash flows or asset values.

Why it matters

Price is what you pay and value is what you get. Comparing the two is the core of investing.

Read the guide
How to Read a P/E Ratio

Related terms

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General education, not investment, tax or legal advice. Read our disclosures.