# Valuation Model A mathematical model to calculate the [fundamental value](fundamental-value.md) of a [security](security.md). The field of quantitative finance concerns itself with the pricing and optimal allocation of securities contracts in terms of their [income cashflows](income-cashflows.md) and the risks associated with the assets. See also [fundamental value](fundamental-value.md) and [present value](present-value.md). ## References 1. Grinold, Richard C., and Ronald N. Kahn. Active portfolio management: Quantitative theory and applications. Probus, 1995. 1. Wilmott, Paul. Paul Wilmott introduces quantitative finance. John Wiley & Sons, 2007.