Valuation in finance refers to the process of determining the current worth of an asset or a company. It is usually done to estimate the fair price or market value of a security, such as a stock, bond, or real estate property.

Valuation methods typically involve analyzing a range of financial data and metrics, such as revenue, earnings, cash flow, and assets, as well as industry and economic factors, to arrive at an estimated value.

The ultimate goal of valuation is to determine whether an investment opportunity is undervalued, overvalued, or fairly valued.