Core Business Valuation Methods

These pages cover the main approaches used to estimate business value, compare companies, and choose a valuation method.

In this section

• Business Valuation Approaches
  Business-valuation terms for asset-based, market, comparable-company, and sum-of-the-parts valuation approaches.
  • Asset-Based Approach in Business Valuation: Calculations and Adjustments
    A comprehensive guide to the asset-based approach in business valuation, including detailed calculations, necessary adjustments, and examples.
  • Business Valuation: Estimating a Company's Value with 6 Proven Methods
    A comprehensive guide to business valuation covering six essential methods for accurately estimating the value of a business or company.
  • Comparable Company Analysis: Utilizing Peer Metrics for Investment Valuation
    A comprehensive guide to Comparable Company Analysis (CCA), exploring its application in investment valuation, methodologies, key metrics, and practical insights for investors.
  • Market Approach: Definition and Mechanism for Asset Valuation
    An in-depth exploration of the Market Approach, a method for determining the value of an asset by analyzing the selling prices of comparable items. This entry covers the theory, types, applications, and examples of the Market Approach in various industries.
  • Sum-of-the-Parts Valuation (SOTP): Meaning, Formula, and Examples
    A comprehensive guide to understanding the Sum-of-the-Parts Valuation (SOTP) method, including its meaning, formula, application, and real-world examples. Learn how companies evaluate the value of individual divisions spanning multiple industries.
• Valuation Foundations and Methodology
  Valuation-method terms for absolute valuation, financial valuation, valuation methodology, and the base concept of valuation.
  • Absolute Valuation: Determining Intrinsic Worth
    Absolute Valuation is a method used in fundamental analysis to assess a company's intrinsic value by examining its financials without comparing it to other firms.
  • Financial Valuation: Determining the Worth of a Company, Asset, or Entity
    Comprehensive overview of Financial Valuation, including its processes, methodologies, and applications in various contexts.
  • Valuation Methodology: Different Approaches Used to Value a Business
    Comprehensive overview of the various approaches and methods used to determine the value of a business, including income approach, market approach, and asset-based approach.
  • Valuation: Estimating the Worth of Assets and Companies
    A comprehensive analysis of valuation methods and their applications in estimating the current worth of assets and companies.