Valuation

Tom’s IT Pro Business Glossary V
By William Van Winkle February 28, 2011 1:00 PM
27. Valuation

The assessment of a value on a given good or service.

Significance

Valuation is essential in any business endeavor, as it is as necessary to fairly price products as it is essential to fairly value a company. Overvaluation or undervaluation can result in pricing imbalances compared to the rest of the market that may either result in an abrupt "correction" or otherwise impair the company's ability to do business.

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