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Home Definitions

What is Valuation? Definition or Meaning

Posted by Bizversity

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.

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