Valuation Range
Definition
The spread between the low and high implied valuations produced by applying multiple valuation methodologies or by applying sensitivity analysis within a single methodology. A valuation range is more informative than a point estimate because it communicates the uncertainty inherent in the analysis. The FFI Standard requires that valuation analysis presented to investors include a range with the low and high values and the methodology and assumptions driving each end of the range.
Common Misapplication
The most common misapplication is presenting a valuation range where both ends of the range are derived from the same optimistic assumptions using different methodologies, producing a range that is artificially narrow and does not reflect genuine valuation uncertainty.
FFI Standard Reference
This term is defined and applied in Book 4, Section 4.1: The Valuation Methodology Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Valuation Range. https://ffistandard.org/glossary/valuation-range/. 2026.