What Is A Valuation?

Kevin Henderson

Reviewed by

Kevin Henderson WSO Editorial Board

Expertise: Corporate Finance | Private Equity

Valuation is the process of placing a cash value on a company (or asset). Within investment banks, valuation is frequently done either by the Equity Research department or the IBD (for the purposes of selling / buying the company in question).

Analysts conducting the valuation will usually use a form of comparable analysis to evaluate the financial metrics of the firm and compare it to similar ones in the market to achieve a rough valuation.

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Kevin Henderson

Kevin Henderson is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. Kevin is currently the Head of Execution and a Vice President at Ion Pacific, a merchant bank and asset manager based Hong Kong that invests in the technology sector globally. Prior to joining Ion Pacific, Kevin was a Vice President at Accordion Partners, a consulting firm that works with management teams at portfolio companies of leading private equity firms. He has worked at Lazard and Enbridge, and holds an MBA from HBS. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.

Valuation
what is a valuation