Sir what is the difference between valuation and evaluation ?



0

1 Answer(s)


0

Valuation is the process of analyzing the fundamental value of a company and its cash flows to determine how much it is worth. It is like deciding on the price of a house. The popular valuation methods used are DCF, Comparable Trading, Comparable Acquisitions etc.

I don't think "Evaluation" is a technical term or process in finance. It could potentially refer to due diligence were you are researching on a company or industry to better understand the companies business model, competition etc.