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Valuation

UK //ˌvæl.jʊˈeɪ.ʃən//US //ˌvæl.juˈeɪ.ʃən//

Definition

The process of determining the monetary worth of an asset or company.

In simple words: The process of determining how much something is worth.

Examples

The valuation of the property increased significantly over the years.
They conducted a valuation of the company's assets before the merger.
An accurate valuation is essential for potential investors.
A professional valuation was needed to decide the selling price.
The valuation report helped clarify the worth of the business.
Valuation methods can vary based on the type of asset.
In the stock market, regular valuation plays a crucial role.

Usage notes

Commonly used in finance and business contexts. Appropriate in formal discussions. Avoid informal contexts.

Grammar pattern

valuation + of + object

Memory hint

Think of 'value + nation' - a nation where everything is appraised for its value.

Collocations

real estate valuation
valuation report
market valuation
business valuation
asset valuation

Synonyms

assessment
appraisal
estimation
evaluation
measurement

Common mistakes

Confusing 'valuation' with 'value' as they have slightly different meanings.
Using 'valuation' incorrectly in casual conversations.
Mixing up 'valuation' with 'evaluation', which has a different focus.