Glossary › valuation

Trading glossary · fundamentals

valuation

Working out how much a company is really worth, to judge whether its share price is cheap or expensive.

The fuller meaning

Estimating what a business or asset is worth, often with ratios such as P/E, P/B, P/S and dividend yield, compared with peers and history. Different ratios suit different companies, and price can stay far above or below value for years.

valuation.

Related words

adoption · analyst estimate · balance sheet · Bank of Japan · beat · bond · book value · business cycle · cash flow · central bank