Valuation
Definition
An estimate of the economic value of a company expressed as a monetary figure. Valuation is not a single objective number; it is an output of a methodology applied to a set of assumptions. The FFI Standard requires that every valuation presented in investor communications or financial documents specify the methodology used, the key assumptions on which it depends, and the date as of which it was calculated.
Common Misapplication
The most common misapplication is presenting a valuation figure without specifying the methodology used to derive it. A valuation stated without a methodology cannot be independently assessed, compared to prior valuations, or verified during due diligence.
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. https://ffistandard.org/glossary/valuation/. 2026.