basis for valuation

USAGE SUMMARY

The phrase "basis for valuation" is correct and usable in written English.
It can be used in contexts related to finance, accounting, or any field where determining the value of an asset or entity is necessary. Example: "The appraiser provided a detailed report outlining the basis for valuation of the property, which included comparable sales and market trends."

✓ Grammatically correct

Encyclopedia Britannica

The New York Times

Cornell University

SEP

TechCrunch

Food and Agriculture Organization of the United Nations

Forbes

Forbes

Human-verified examples from authoritative sources

Exact Expressions

6 human-written examples

For some types of properties, such as single-family residences, sales of generally similar properties, known as "comparables," provide a good basis for valuation.

Encyclopedia Britannica

It's not every day that a 27-year-old learns that he was adopted, much less a 27-year-old who, according to Forbes, using the August sale of Facebook shares by Interpublic as a basis for valuation, was worth $17.5 billion as of September 2011!

The New York Times

Although the material terms may vary widely depending upon the exact nature of the contest, they will generally include: How to enter or participate; eligibility restrictions; entry deadline dates; whether prizes can be won; when prizes can be won; the extent, nature and value of prizes; basis for valuation of prizes; time and means of selection of winners; and/or tie-breaking procedures.

Cornell University

Feature diversity can provide a basis for valuation, but it raises measurement challenges.

SEP

It's important to note that foreseeable and projected growth are key drivers of generating term sheet interest, and not purely a basis for valuation.

TechCrunch

Where this is the case, a dose-response function can provide the basis for valuation of the environmental variable of interest; this is the main technique used to derive economic values for air pollution.

Food and Agriculture Organization of the United Nations

Human-verified similar examples from authoritative sources

Similar Expressions

54 human-written examples

Events from this period are the real basis for valuations of racing Ferraris, Alfas, and other thoroughbreds.

Forbes

The company contends that the government miscalculated the population in areas covered by the licenses, which is the basis for the valuation.

The New York Times

During his meeting with White, Piramal handed over a succinct three-page note detailing his basis for the valuation.

Forbes

These entities can also provide the basis for claiming valuation discounts for gift and estate tax purposes for the property held within these entities, or the family can create a trust to hold a portion of the interest.

Forbes

For many startups, the IP is the sole basis for the valuation of the company, so investors need to be confident that it is real". As Cohen points out, it's not just patents that startups must secure a common misconception.

Forbes

Expert writing Tips

Best practice

In financial reports, ensure the "basis for valuation" is transparent and auditable, aligning with accounting standards and regulatory requirements.

Common error

Avoid vague statements about the "basis for valuation". Always provide concrete details about the methodology and inputs used to arrive at the valuation.

Linguistic Context

The phrase "basis for valuation" functions as a noun phrase, identifying the underlying factors or methodology used to determine the value of an asset or entity. As Ludwig AI suggests, it is generally used in finance, accounting, and property valuation.

Expression frequency: Uncommon

Frequent in

News & Media

33%

Science

33%

Formal & Business

17%

Less common in

Academia

17%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "basis for valuation" is a noun phrase used to describe the foundation or justification for determining an asset's value. Ludwig AI confirms its correctness and usability, particularly in finance, accounting, and real estate. While it's not overly common, it's widely accepted in professional and formal contexts. To enhance writing, it's best to specify the factors and data used in the valuation. Common errors include vagueness, which can be avoided by providing concrete details about the methodology. Alternatives such as "foundation for assessment" or "valuation methodology" can also be employed depending on the specific context.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

foundation for assessment

Emphasizes the underlying principles used in determining value, similar to a structural foundation.

criteria for evaluation

Highlights the specific standards and measures applied during valuation.

method of appraisal

Focuses on the process and techniques employed to estimate value.

valuation methodology

Stresses the systematic approach used for determining value.

assessment framework

Highlights the structural guidelines used in the valuation process.

value determination

Directly refers to the act of establishing value, without emphasizing the supporting reasoning.

justification for pricing

Focuses on the reasons supporting a specific price or value.

rationale for valuation

Highlights the logical explanation behind the valuation.

underlying principles of valuation

Emphasizes the core concepts that guide the valuation process.

valuation premises

Focuses on the assumptions and conditions under which the valuation is conducted.

FAQs

What does "basis for valuation" mean in real estate?

In real estate, "basis for valuation" refers to the comparable sales, market analysis, and property characteristics used to determine a property's fair market value. Appraisers use these factors to establish a justifiable price.

How is the "basis for valuation" determined for a startup company?

The "basis for valuation" for a startup typically involves analyzing its financial projections, market size, growth potential, and comparable company valuations. Investors often use these elements to assess the startup's worth.

What are some alternative phrases I can use instead of "basis for valuation"?

You can use alternatives like "foundation for assessment", "criteria for evaluation", or "valuation methodology" depending on the context.

How important is the "basis for valuation" in financial reporting?

The "basis for valuation" is crucial in financial reporting because it ensures transparency and accuracy in asset valuation. A well-defined and justifiable basis enhances the reliability of financial statements.