Stock valuation is a way of figuring out how much a company that is publically traded on the stock market is worth. Basically it's like figuring out how much a company is worth. It's kind of like how much you would pay for something if you were going to buy it.
It's important because it helps investors compare companies and decide which ones might be good investment options. Different methods like looking at the company's finances and past performance, or analyzing how other similar companies are doing can be used to do stock valuation. It also helps to compare the company to other stocks and pricing in the market, to see how much it is worth compared to similar companies.
In the end, stock valuation helps investors decide if a stock is worth investing in or not. It's a way to figure out the value of the company so that people can make informed decisions when it comes to investing.