A good business can still be a poor investment at the wrong price. That is why valuation has a separate place in the Quantvesting funnel.
The basic question is simple: what am I paying for this business?
There are many ways to approach valuation, but the common idea is the same. You are comparing the market price with some estimate of what the business can reasonably be worth. That estimate depends on assumptions, so the important part is not just the final number. It is understanding what has to be true for that number to make sense.
A company growing quickly may deserve a higher valuation than a slow-growing business. A strong competitive position may justify better economics. High debt or weak cash generation may deserve a discount. The valuation needs to reflect the quality and durability of the business rather than being treated as a standalone ratio.
This is where the earlier parts of the funnel matter. Business and financial analysis help form the underlying view. Valuation then connects that view to the price in the market.
Quantvesting uses valuation and framework-derived target context to identify situations where there may be a meaningful gap between current price and assessed value. That gap is a reason to investigate, not a promise of return.
I also think valuation is useful because it forces humility. If the conclusion depends on very optimistic growth, margins or other assumptions, the risk is different from a case that works under more conservative assumptions.
So I would not ask only, “Is this company good?” I would ask: “Is the price sensible for what I believe this business can become?”
That is the role of valuation in Quantvesting.