valuation

determination, based on fair market prices, of the monetary value of documents

See appraisal.

Valuation is the process of estimating the value, or worth, of an asset or investment.

Sometimes it means determining a fixed amount, such as establishing the value of your estate after your death. Other times, valuation means estimating future worth.

For example, fundamental stock analysts estimate the outlook for a company's stock by looking at data such as the stock's price-to-earnings (P/E), price-to-sales, and price-to-book, or net asset value, ratios.

In general, a company with a high P/E is considered overvalued, and a company with a low P/E is considered undervalued.