What term refers to the estimated economic value of a company?

The term that refers to the estimated economic value of a company is valuation. Valuation involves determining the worth of a business based on various factors, such as its assets, liabilities, earnings, and growth potential. This process is essential for investors, as it informs decisions regarding investment opportunities, mergers, acquisitions, or sales. Valuation can be approached through multiple methodologies, including discounted cash flow analysis, comparable company analysis, and precedent transactions, each providing insights into how much a company is worth in the current market context.

The other terms have different contexts: a forecast pertains to predicting future performance based on historical data and trends; a revenue multiple is a financial metric that relates a company's enterprise value to its revenue, useful for comparative analysis; and burn rate measures the rate at which a company is spending its available cash, commonly used by startups to understand their capital efficiency and runway.