What does “compensate” mean?

Does it mean ‘be able to make profits’? I used this link: https://www.merriam-webster.com/. They

point to rising global turmoil underscored by the recent terrorist attacks in Barcelona and the racially charged violence in Charlottesville, Virginia, as well as valuations that no longer compensate for potential flareups in Algeria and Yemen. C What does Donald Trump’s behavior mean about the nation’s debt ceiling?

Source: https://www.bloomberg.com. The

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Asked on March 2, 2021 in Other.
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how can the valuations of assets that no longer compensate for potential flareups in North Korea and Venezuela be distorted.

The value of a company is measured by an analyst. If they can no longer compensate for X then that means prices aren’t adjusted up or down because of X. If you agree that X could affect the price, then you would agree that the valuation is inaccurate unless it takes into account X. To

take @Touo’s comment into account, I think there is a reading where “compensate for” is the correct way to write it. The process of valuation should take into account the risk so that the resulting valuations (the results of many analysts) will compensate for that risk. The riskier an investment is, the higher the valuation would have to be to make the investment worthwhile. Do some of you have any opinion of that the valuation isn’t high enough to offset the risk?

Answered on March 2, 2021.
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In this example, this means “make up and justify”. If an overweight person wears clothes that are too big for them, it could be said that they are compensating for their weight. EXAMPLE:

Clothing that is too big for them could be said to be compensating for their weight.

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