The process of determining how much a security is worth. Security valuation is highly subjective, but it is easiest when one is considering the value of tangible assests, level of debt and other quantifiable data of the company issuing a security. For example, determining a company's earnings for the current year is easier than determining what the value of the company's brand recognition might be in 10 years. Valuation is important in fundamental analysis the practitioners of which usually consider a company's earnings to be indicative of its value.
