Business Valuation

Business valuation is the process of determining the economic value of a business or company. It can be used to help determine the sale price of a business, the value of shares in a company, or the worth of a business for estate or tax purposes.

There are many methods of business valuation, but most fall into one of three broad categories:

1. Asset-based valuation: This approach values a business based on its assets, such as cash, property, and equipment. This method is often used to value businesses that are in distress or have very little income.

2. Market-based valuation: This approach looks at comparable sales of similar businesses to estimate the value of the business being valued. This method is often used to value small businesses and businesses that do not have a lot of publicly-available information.

3. Income-based valuation: This approach values a business based on its expected future economic benefits, such as cash flow or earnings. This method is often used to value larger businesses with a long history of financial data