Market valuation refers to the estimated worth of a business based on the current market conditions, comparable sales, and the perceived value by potential buyers. It is often used to determine a fair price for a business in the context of a sale or acquisition.

Characteristics
– Current Market Conditions: Reflects the economic environment and demand for similar businesses.
– Comparable Sales: Involves analyzing recent sales of similar businesses to gauge value.
– Buyer Perception: Takes into account how potential buyers view the business’s worth based on its performance and market position.
– Market Trends: Considers industry trends and forecasts that may impact future value.

Examples
– A small restaurant may have a market valuation based on recent sales of similar establishments in the area, adjusted for its unique features and customer base.
– A tech startup might be valued higher in a booming tech market, reflecting investor enthusiasm and competition for similar companies.