Valuation (finance)
In finance, valuation is a process of defining the present value PV of an asset. In the multiple context, it is often the hypothetical price that a third party would pay for a condition asset. Valuations can be done on assets for example, investments in marketable securities such(a) as companies' shares and related rights, business enterprises, or intangible assets such(a) as patents, data as well as trademarks or on liabilities e.g., bonds issued by a company. Valuations are needed for many reasons such(a) as investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable events to imposing the proper tax liability.