investing

valuation

The process of determining the current worth of an asset or company.

Example

"The startup received a valuation of $50 million after its Series A funding round."

💡 Memory Tip

VALU-ation — you determine the VALUE of something. The -ation means it's a process.

Etymology

From Latin 'valere' meaning 'to be worth' + -ation — the process of determining worth.

Common Misspellings

valuatonvaluaionvaluationvalaution

Related Terms

market capitalizationequity

See Also

price-to-earningsintrinsic value

Want to understand money better? Get money tips and new terms in your inbox.