Equity valuation is the process of determining the fair value of a company's shares. This involves analyzing various factors, including the company's financial performance, market conditions, and future growth potential. Common methods used in equity valuation include the Discounted Cash Flow (DCF) analysis and the Price-to-Earnings (P/E) ratio. Investors and analysts use equity valuation to make informed decisions about buying, holding, or selling stocks. Accurate valuation helps identify whether a stock is overvalued or undervalued compared to its intrinsic value, guiding investment strategies and risk management.