Clueless about Valuation

For the uninitiated, the concept of valuation is fraught with mystery and magic. However, in definitional terms it is fairly straightforward. The American Heritage Dictionary defines valuation as “(t)he act or process of assessing value or price; an appraisal.”So what does this term of art mean to its various consumers, which include practitioners of mergers and acquisitions as well as research analysts?

My journey of discovery into the meaning of this concept started with a discussion with Mr. Einar Kilde Evensen of DnB NOR Markets who provided a framework for the subject as well as referred me to an excellent website (www.damodaran.com) on valuation created by Professor Aswath Damadoran of NYU’s Stern School of Business.

This is only an excerpt of Clueless about Valuation

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