Core Business Valuation Methods

Core Business Valuation Methods covers absolute valuation, asset-based valuation, comparable company analysis, market approach, SOTP, and valuation methodology terms.

Use these pages when the selected valuation method, appraisal evidence, fair-value basis, or transaction context changes the value conclusion. It sits inside Valuation Methods and Appraisal, so readers can move up when the broader valuation context matters.

Use the table below to choose the narrower valuation branch before relying on a model input, market multiple, forecast, risk premium, price signal, or recommendation.

What This Branch Covers

What to Check

• Forecast source, valuation date, market data, accounting adjustments, and model version.
• Cash-flow input, discount rate, multiple, growth assumption, terminal value, balance-sheet adjustment, and scenario range.
• Comparable set, transaction set, sector, geography, size, leverage, margin profile, and accounting basis.
• Effect on intrinsic value, relative value, price target, margin of safety, impairment view, deal price, or recommendation.
• Sensitivity to growth, margins, reinvestment, discount rate, exit multiple, leverage, and market conditions.

Common Mistakes

• Treating a valuation output as a precise fact instead of a range of estimates.
• Comparing multiples without normalizing earnings, leverage, accounting policy, growth, and risk.
• Ignoring valuation date, source quality, cyclicality, nonrecurring items, and sensitivity analysis.
• Using valuation terminology as personalized investment, tax, legal, or appraisal advice.

Valuation content is educational and does not provide investment, tax, legal, accounting, appraisal, or valuation advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.