stock valuation

Definition

The process of calculating the fair market value of a stock by using a predetermined formulas that factors in various economic indicators. Stock valuation can be calculated using a number of different methods. The most common methods used are the discounted cash flow method, the P/E method, and the Gordon model. Whichever method is chosen must be done accurately so that the price of stock can be valued properly.

Use stock valuation in a sentence

If you are thinking about making a major stock purchase you should first try and get an accurate stock valuation.

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You should try and make sure that you have done a good job with your stock valuation so that you can get it done quickly.

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The stock valuation was a calculating process and it involved the fair market, which interested me quite a bit and I realized they used predetermined formulas.

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