# Equity Valuation

*Saving & Investing — Finicade finance glossary*

Estimating what a share is really worth, rather than what it's trading at — usually by discounting the future cash it will generate. The gap between value and price is where investors hope to profit.

**Also known as:** valuation

**Related terms:** [Dividend Discount Model](https://finicade.com/glossary/dividend-discount-model), [P/E Ratio](https://finicade.com/glossary/p-e-ratio), [Time Value of Money](https://finicade.com/glossary/time-value-of-money)

**Taught in:** Charter Climb — The Markets Exam

Source: https://finicade.com/glossary/equity-valuation