Equity valuation is the process of determining the fair value of a company's stock. This involves analyzing various factors, such as the company's financial performance, market conditions, and future growth potential. Investors use different methods, like discounted cash flow (DCF) analysis or price-to-earnings (P/E) ratios, to estimate the stock's worth. Accurate equity valuation helps investors make informed decisions about buying, holding, or selling shares. It is essential for assessing whether a stock is overvalued or undervalued compared to its intrinsic value, guiding investment strategies and portfolio management.