What Is Company Valuation? The Essentials Of Company Valuation
Company valuation is a process of determining the current value of a company. There are many ways to calculate it, but three major business valuation methods are used most for valuing a company and that too depends on the company type and requirements. What is Company Valuation? Company valuation is a valuation process of determining the current value of a company. In fact, the valuation process is quite simple: the value of a company is its market capitalization. What is that? Market capitalization is simply the market value of a company’s outstanding shares. When a company share of stock is purchased or sold, the purchaser or seller is usually offering the buyer the current market value of the share of stock (rounded to the nearest dollar amount), or what is commonly referred to as the dollar price. The dollar price is the total value of all of the shares in the company, all of its profits, debts, assets, cash flows, and all of its future earnings. It is only a rough approximation va