What is Valuation? Definition or Meaning

Valuation refers to what the company is financially worth. Asset valuation, earnings multiple, and comparable sales are some methods used to value a business. You can do this yourself or have a financial service provider, such as a bank do it for you.

For example…

Ruby has decided to sell used Fitbits on eBay. She has over five hundred of these devices, all in near-new condition. To understand her online businesses valuation, she uses the assets valuation methods and comes up with a figure of seventy-five thousand dollars, a great little inventory to have to run this cosy business.