Investment profitability analysis and business valuation are related but distinct concepts. Investment profitability analysis involves assessing the profitability and feasibility of specific investment projects. This entails decisions regarding capital allocation to achieve returns from investments. Profitability analysis includes evaluating cash flows generated by the project, estimating investment costs, and analyzing other risk and uncertainty factors. The aim of profitability analysis is to assess whether an investment generates sufficient returns to be profitable for the business. On the other hand, business valuation is the process of determining the value of the entire company. Valuation takes into account various factors such as net asset value, potential future earnings, investment risk, as well as market and industry context. The objective of business valuation is to establish its market value or potential value in the case of sale, merger, acquisition, or other business transactions. Valuation can be applied to both mature companies and startups, but depending on the specific case different methods might be applicable. However, it’s important to note that from an investor’s perspective, business valuation may be just one project within the entire capital group.