valuation
val-yoo-AY-shuhn
/ˌvæljuˈeɪʃən/
An estimation of the worth of something, especially one carried out by a professional appraiser.
Refers to the calculated monetary value itself, or the formal process of calculating that value.
The story behind the word. Derived from the Latin verb 'valere,' which meant to be strong, healthy, or of worth. This root also gave us 'valor' (strength of mind) and 'value.'
Word relationships
- appraisal: Appraisal is the act of estimating value, while valuation is often the resulting figure or the formal financial calculation.
- estimation: Estimation is more casual and less precise than a professional valuation.
Commonly confused with
- evaluation: Evaluation is broad (assessing quality, performance, or ideas), while valuation is strictly financial or monetary.
Word family
- value (noun/verb): The worth of something; to estimate the worth of.
- valuable (adjective): Worth a great deal of money.
Collocations
- market valuation
- independent valuation
- valuation model
- high valuation
Example sentences
- "The tech startup's valuation soared to one billion dollars after the latest funding round." A corporate acquisition.
- "The family disputed the government's high valuation of the inherited land." An estate tax assessment.
Memory hook
Think of 'Value-Nation'. A whole nation of experts deciding the exact 'value' of your assets. Valuation is the calculation of value.
When not to use
Do not use to describe personal, emotional value (e.g., 'my valuation of our friendship'); use 'appreciation' or 'evaluation' instead.
Fun facts
- The highest business valuation in history belongs to the Dutch East India Company, which was valued at an adjusted 7.9 trillion dollars in the 17th century.
Related words
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