"Business valuation" is the determination of the value of a business or its parts using various valuation methods and techniques. This involves looking at economic value, based on the net cash flows and risks of the business. Often used for this purpose is the discounted cash flow method, which looks at future revenues and costs.

The most common reason for a business valuation is when transferring shares in a company. This could be in a takeover, a management buyout, buying out a minority shareholder, business succession, divorce, or inheritance.

In addition, a valuation is useful in determining economic damages, tax matters, legal proceedings and when implementing employee stock and option plans. Business valuation is also becoming increasingly important within financial reports and annual reports.

In the end, it's all about understanding the true value of a business so you can make informed choices for the future.