A more thorough explanation:

Definition: Valuation is the process of determining the estimated worth of a thing or entity.

For example, when you want to sell your car, you might get it valued by a professional to determine its worth. The valuation will take into account factors such as the car's age, condition, and mileage to estimate its value.

Valuation is also used in finance and investing. When a company wants to go public and sell shares, it will need to be valued to determine the price of the shares. Investors will look at the company's financial statements and other factors to estimate its worth.

Another example of valuation is assessed valuation, which is the value that a taxing authority gives to property. This value is used to determine the property tax rate that will be applied to the property.