valuation

American  

[val-yoo-ey-shuhn] / ˌvæl yuˈeɪ ʃən /

noun

1. the act of estimating or setting the value of something; appraisal.

2. an estimated value or worth.

3. the awareness or acknowledgment of the quality, nature, excellence, or the like of something.

   public valuation of the importance of education.

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valuation British  

/ ˌvæljʊˈeɪʃən /

noun

1. the act of valuing, esp a formal assessment of the worth of property, jewellery, etc

2. the price arrived at by the process of valuing

   the valuation of this property is considerable

   I set a high valuation on technical ability

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Other Word Forms

• prevaluation noun
• self-valuation noun
• valuational adjective
• valuationally adverb

Etymology

Origin of valuation

1520–30; value + -ation; compare Middle French valuation

Compare meaning

How does valuation compare to similar and commonly confused words? Explore the most common comparisons:

• evaluation vs. valuation

Explanation

The process of figuring out exactly how much something is worth is known as valuation. Before you sell your old Pokemon cards, you should take them to an expert for a valuation. Whenever you determine the monetary value of something, that's valuation. However, you're most likely to come across this word in the context of banking or finance. The valuation of a company affects whether or not investors are interested in it, and the valuation of stocks determines how much a stockholder makes when she sells them. Valuation shares a root with value, from the Latin root valere, "be strong, be worth."

Example Sentences

That lower valuation doesn’t mean the stock is cheap.

From The Wall Street Journal • Apr. 19, 2026

There could be valuation declines of the leveraged companies because AI is successful or valuation declines because of shocks from higher energy prices.

From Barron's • Apr. 18, 2026

But within the valuation data for the red-hot chip sector, there is a warning for investors in a hot pocket of an industry that has been cyclical for decades.

From MarketWatch • Apr. 17, 2026

It recently raised $1 billion at a $23 billion valuation.

From The Wall Street Journal • Apr. 17, 2026

Perhaps it was because Arthur was always a simple fellow, who took people at their own valuation easily.

From "The Once and Future King" by T. H. White

Related Words

• assessment
• cost
• estimate