conservative valuation

USAGE SUMMARY

The phrase "conservative valuation" is correct and usable in written English.
It can be used in contexts related to finance, investment, or appraisal, where a cautious or risk-averse estimate of value is being discussed. Example: "In our financial analysis, we adopted a conservative valuation approach to ensure that we do not overestimate the potential returns."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

9 human-written examples

John Tinker, an analyst at the Maxim Group, estimated in a research note on Thursday that at a highly conservative valuation of 0.6 times revenue, the Nook company could be worth $900 million.

The New York Times

Mike Allen at Panmure Gordon said: We maintain a buy recommendation but reduce our target price from 285p to 216p based on a more conservative valuation of 7 times 2012 estimated earnings per share.

The Guardian - Business

Based on its est reserves & a (conservative) valuation of $10 p barrel, #Aramco cld be worth more than $2.5 tr. 4 times the size of Apple The official statement says the privatisation of Aramco would be "consistent with the broad a progressive direction of the Kingdom", but which it means, lots of companies in Saudi Arabia are privatising at the moment.

Independent

Mr. Thain's initial pay includes a salary of $750,000 and an unspecified bonus; restricted stock worth $28 million at current market values; and a three-tier grant of 1.8 million stock options worth about $20 million, by conservative valuation assumptions.

The New York Times

If he has only a 1% stake, a conservative valuation would put him at $30 million.

Forbes

The removal of phosphorus, nitrogen, carbon, and avoided flooding damages of the retention basin itself provided an estimated additional $17,730/hectare of retention basin/year using a conservative valuation of avoided flooding damages.

Applied Water Science

Human-verified similar examples from authoritative sources

Similar Expressions

51 human-written examples

In any event, he said, fail-safe protection was provided by "the conservative policies of lending institutions, whose executives refuse to make loans in excess of conservative valuations".

The New York Times

It is striking that so-called "secondary" sales by clients of stakes in buy-out funds are reputedly taking place at large discounts to their reported values, although again trading remains very thin.In the end pressure for consistent and conservative valuations must come from clients.

The Economist

For the long picks, I chose (what I considered to be) conservative valuations, and for the short picks, I chose the optimistic valuations.

Forbes

At the time Andreessen penned his famous column, he wrote that the "market hates technology," based off conservative valuations for big companies like Apple and Google.

TechCrunch

Coull has avoided VC route because, as CEO and founder Irfon Watkins says, "it's too long winded and you get conservative valuations within UK.

TechCrunch

Expert writing Tips

Best practice

When presenting a "conservative valuation", clearly state the assumptions and methodologies used to arrive at the estimate. Transparency builds trust and demonstrates the rigor of your analysis.

Common error

Avoid using overly vague terms like "industry standards" without specifying which standards you're using. Providing specific details strengthens your argument and avoids potential misinterpretations of your "conservative valuation".

Linguistic Context

The phrase "conservative valuation" functions as a noun phrase, where the adjective "conservative" modifies the noun "valuation". According to Ludwig AI, this phrase is correct and usable in written English, commonly appearing in financial and economic contexts.

Expression frequency: Uncommon

Frequent in

News & Media

33%

Science

33%

Formal & Business

33%

Less common in

Reference

0%

Social Media

0%

Encyclopedias

0%

Ludwig's WRAP-UP

The phrase "conservative valuation" refers to a cautious and risk-averse approach to estimating the value of an asset or company. As confirmed by Ludwig AI, the phrase is grammatically correct and widely used in financial, economic, and business contexts. Related phrases include "cautious valuation" and "prudent valuation". Best practices involve clearly stating assumptions, while common errors include using vague terms. While the phrase appears across various reliable sources, it's more frequent in news media, science, and formal business settings. To ensure clarity and credibility, clearly define the methods applied when using this phrase in your analysis.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cautious valuation

Emphasizes the care and prudence taken in the valuation process.

prudent valuation

Highlights the wisdom and good judgment applied to the valuation.

moderate valuation

Suggests that the valuation is kept within reasonable limits, avoiding extremes.

restrained valuation

Implies that the valuation is kept under control, avoiding inflation of value.

understated valuation

Indicates that the valuation is deliberately lower than what might be considered the true value.

low-end valuation

Refers to a valuation at the lower range of possible estimates.

careful valuation

Highlights the attention to detail and thoroughness in the valuation.

realistic valuation

Emphasizes that the valuation is grounded in reality and avoids speculation.

sober valuation

Suggests a serious and thoughtful approach to valuation, free from exuberance.

conservative appraisal

Uses "appraisal" as a synonym for valuation, emphasizing a cautious assessment.

FAQs

What does "conservative valuation" mean in finance?

In finance, a "conservative valuation" is an estimate of an asset's worth that is deliberately cautious and avoids overestimation. It's often used to mitigate risk and provide a more reliable assessment of value.

When is it appropriate to use a "conservative valuation"?

A "conservative valuation" is appropriate when assessing investments, valuing assets for tax purposes, or estimating the worth of a company during mergers and acquisitions. It's particularly useful in uncertain or volatile market conditions.

What are some alternatives to "conservative valuation"?

You can use alternatives like "cautious valuation", "prudent valuation", or "understated valuation" depending on the specific context.

How does a "conservative valuation" differ from an optimistic valuation?

A "conservative valuation" aims to provide a lower, more cautious estimate of value, while an optimistic valuation aims to offer a higher, more ambitious estimate. The former is used to mitigate risk, and the latter is used to attract investors or justify higher prices.