Valuation is a financial process used to determine the monetary value of an asset, business, or investment. This process is crucial in scenarios such as mergers and acquisitions, investment decisions, financial reporting, and taxation. Various methods can be employed to perform a valuation, including comparable company analysis, discounted cash flow (DCF) analysis, and precedent transactions metrics.

One example of where valuation is critical is during a business acquisition, where the buyer needs to understand the worth of the target company to make an appropriate offer. Another example is financial reporting, where companies assess the fair value of their assets and liabilities.

In modern financial processes, like those managed by Easy Month End, valuation concepts may intertwine with tasks such as balance sheet reconciliations and ensuring accurate month-end reporting. Related financial terms like "Fair Value" and "Discounted Cash Flow (DCF)" often relate to valuation in practice.