Accounting Valuation is just the value of a given business that the accountants derive, usually as something driven by the company's book value, which may or may not be a good indicator of what the company is actually worth.

Related or Semi-related Video

Finance: What is terminal value?0 Views

00:00

finance a la shmoop what is terminal value and no it's not the value of a [Grave stones with for sale signs on]

00:07

dead person nor of a disease that kills you um terminally nor is it what gate 17

00:13

be at LaGuardia would sell for on eBay nope terminal value is the end value of [Stop signs appearing]

00:19

something and in our little fancy finance world here

00:21

it applies usually to a stream of cash flows and then that company is sold at [Two men looking at a screen showing stock prices]

00:26

the end for some terminal value sperm bank of America is storing progeny for [The words 'illustrative example time' fall out of a piggy bank]

00:34

the future on a cash flow basis it will break even for five years and at the end

00:39

of that time period it will sell for an orgasmically wonderful price of 1 [The bank moves to the end of the timeline and a sold sign appears]

00:44

million dollars that million dollars is its terminal or end value and it can be [Pile of cash]

00:50

discounted back for time and risk to present value dollars and if you care

00:55

about all that we have opuses on the subject all over shmoop and hopefully this

01:00

won't be you by the time you've finished watching them all that's [Grave stone of 'Sally Shmooper']

01:03

terminal value terminal what things are worth at the end

Up Next

Finance: What is the Difference Between Market Value and Book Value?
42061 Views

What is the difference between market value and book value? These two figures describe what a company is worth. Book value does this by finding the...

Finance: What is Net Asset Value (NAV)?
5 Views

NAV isn't a cool new navigation app...it's how mutual fund shares are valued or priced at the end of each trading day.

Finance: What are Weighted Averages and Expected Values?
13 Views

What are Weighted Averages and Expected Values? Weighted averages are averages calculated to account for the number of changes that a variable, suc...

Finance: What determines the value of a business in 90 seconds or less?
2 Views

What determines the value of a business? The value of a business is contingent on several factors. One of the primary factors is how the business f...

Find other enlightening terms in Shmoop Finance Genius Bar(f)