What is Valuation?

Legal Definition
In finance, valuation is the process of determining the present value (PV) of an asset. Valuations can be done on assets (for example, investments in marketable securities such as stocks, options, business enterprises, or intangible assets such as patents and trademarks) or on liabilities (e.g., bonds issued by a company). Valuations are needed for many reasons such as investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable events to determine the proper tax liability, and in litigation.
-- Wikipedia
Legal Definition
The act of ascertaining the worth of a thing; or it is the esti-mated worth of a thing.

2. It differs from price, which does not always afford a true criterion of value, for a thing may be bought very dear or very cheap. In some contracts, as in the case of bailments or insurances, the thing bailed or insured is sometimes valued at the time of making the contract, so that if lost, no dispute may arise as to the amount of the loss. 2 Marsh. Ins. 620; 1 Caines, 80; 2 Caines 30; Story, Bailm. §253, 4; Park Ins. 98; Wesk. Ins. h. t.; Stev. on Av. part 2; Ben. on Ins. ch. 4.
-- Bouviers Law Dictionary
Legal Definition
The act of ascertaining the worth of a thing. The estimated worth of a thing. See Lowenstein v. Schiffer, 38 App. Div. 178, 56 N. Y. Supp. 674; State v. Central Pac. R. Co., 7 Nev. 104; Sergeant v. Dwyer, 44 Minn. 309, 46 N. W. 444.
-- Black's Law Dictionary