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Valuation VS evaluation


What is the difference between 'valuation' and 'evaluation'?


For learning: English
Base language: English
Category: Language



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    Best Answer - Chosen by the Asker
    A valuation is performed or placed on an asset to determine its financial worth (or, economic value). "The valuation determined that the car was worth $5,000." "The closing price of the stock set the company's valuation at $10 billion.".

    An evaluation is an analysis of the performance of something or someone, usually against some standard of average performance of similarly situated people or things. "The auto mechanic performed a thorough evaluation of the car to determine if it could safely make the cross country trip.". "Olga's last work evaluation placed her in the top 5% of her peers."

    People are always evaluated. Physical capability is always evaluated. Financial worth is determined through a valuation. We sometimes speak of placing a value on a person, but it is metaphorical. After something is evaluated, a valuation is often determined.

    Valuation is what something is worth (To have value). Evaluation is to determine the worth.

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