Explain valuation and techniques.

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Valuation is the process of determining the current worth of an asset or a company; there
are many techniques used to determine value. An analyst placing a value on a company
looks at the company’s management, the composition of its capital structure, the prospect
of future earnings and market value of assets.

1. Discounted cash flow (DCF) analysis.
2. Comparable transactions method.
3. Market valuation.
4. Book value