The importance of evaluating a company cannot be underscored. By nature, investors use the value of a company to make decisions on whether to buy stocks or not. In simplest terms, valuation can be defined as the process of determining the amount of resources, usually financial, that a company owns. Companies listed in stock exchange are usually valued from time to time in a bid to ensure that their information is readily available to the stakeholders. For instance, Apple Inc. and Amazon Company have in the recent years been in the news having hit a valuation of US$1trillion. The discussion of this paper is centered on the valuation of a company of choice; Bassett Furniture Industries Inc. Valuation Methods Market Capitalization Market capitalization is one of the most commonly used valuation methods that is applied by companies to determine their total value of shares. The method is credited to be one of the easiest ones to use when determining the value of a company. As such, it is preferred as compared to other methods. The method is also easy to understand and as such it is preferable for people with a basic understanding of finance. The following formulae are used when calculating the market capitalization value of a company: Market Capitalization= Existing market price per share* Number of shares. From the above formulae, if the market price of a share is &200 and the total number of shares is 10,000, then the market capitalization value will be given by 200*10,000=$2,000,000. This implies that the value of the company based on the market is 2,000,000. From the above calculation, it goes without saying that the calculation is indeed simple and easy to intectualize.