What are the different methods of business valuation?

What are the different methods of business valuation?

There are several methods for valuing a business, including the income approach, market approach, and asset-based approach. Would you like to know more about a specific method?

Can you explain the income approach?

Sure! The income approach estimates a business's value based on its expected future cash flows, discounted back to their present value. It's often used for businesses with stable earnings.

What about the market approach?

The market approach values a business by comparing it to similar businesses that have recently sold. It looks at market data to determine a fair value.

And the asset-based approach?

The asset-based approach calculates a business's value based on its total net assets, which includes tangible and intangible assets. It's useful for asset-heavy businesses.