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Valuation
Valuation is the process of estimating what an asset is worth, using measures like the P/E ratio, price-to-book ratio, cash flows and comparisons with similar companies. In markets, valuation is constantly being re-set by buyers and sellers.
Why It Matters
Buying a great company at too high a valuation can still be a poor investment.
In India
Foreign investors cited high Indian valuations in 2025 as one reason for selling Indian shares.
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