Company valuation becomes important when you consider to buy a company or want to sell a subsidiary.
Rather home in the investment banking industry, company valuation is also important for consulting firms that are advising clients in the fieled of corporate finance, respectively mergers & acquistions.
The main objective is to determine the value of a target company or the value of a division that is scheduled to be divested.
There a multiple approaches to value a firm. Very common are discounted cash flow approaches. The current value of a firm is the present value of the future cashflows.