Asset Valuation

Determining the value of a portfolio, company or other assets.

There are many models for asset valuation, especially for the valuation of companies and the assets on their balance sheet. Each will use some sort of assumption and may end up with estimates that range widely.

Generally speaking, assets are more “richly” valued in bull markets and times of prosperity as managment and other financial professionals are more optimistic about the future, and may be undervaled in times of distress as views about the future lean towards pessimism.