Valuation Model

A mathematical model to calculate the fundamental value of a security. The field of quantitative finance concerns itself with the pricing and optimal allocation of securities contracts in terms of their income cashflows and the risks associated with the assets.

See also fundamental value and present value.


  1. Grinold, Richard C., and Ronald N. Kahn. Active portfolio management: Quantitative theory and applications. Probus, 1995.
  2. Wilmott, Paul. Paul Wilmott introduces quantitative finance. John Wiley & Sons, 2007.