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Finance & Banking vocabulary · Corporate Finance

Valuation

Meaning in finance & banking, with examples

/ˌvæljuˈeɪʃən/nounCommon term

In finance & banking, valuation means: An estimate of what a company, asset or property is worth, or the process of calculating it.

In Turkish: değerleme, değer biçme, ekspertiz

How it is used

Used in M&A, lending and investing. Analysts carry out a valuation with methods such as discounted cash flow (DCF) or multiples; for a mortgage, a surveyor values the property. Investors debate whether a valuation is too high.

Example sentences

  1. The bank ordered a valuation of the property before approving the mortgage.

  2. The startup raised money at a valuation of 50 million dollars.

Common collocations

  • carry out a valuation
  • company valuation
  • property valuation
  • valuation method
  • M&AShort for mergers and acquisitions: deals in which companies combine with each other or one company buys another.
  • due diligenceA careful investigation of a company, deal or customer before an agreement, to check the facts and find any risks or legal and financial problems.
  • IPOShort for initial public offering: the first time a private company sells its shares to the public on a stock exchange.
  • collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.