Valuation
An estimate of what a company is worth, from multiples or discounted cash flows.
Definition
An estimate of what a company is worth, from multiples or discounted cash flows.
Why it matters
For a shareholder, this notion helps judge what they own: the company’s value, what it pays them and what the market expects.
How to read it in the news
Always compare a company with its sector and its own history, never with a company in another business.
Notitia newsroom · education, not investment advice.