Estimating The Value Of A Company

 

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Asset valuation approach : For this method, we determine the company’s book value or net asset value derived from the account balances on the balance sheet by taking the sum of the value of the assets and then deducting the total liabilities to arrive at a value for net assets.

Hybrid valuation approach: For this method we can combine the asset valuation approach with the income approach to arrive at an estimated value. This rather comprehensive estimate can be a challenge, as it ideally considers all aspects of a business, both tangible and intangible, and may be very different from the market value. This might also be referred to as estimating the company’s intrinsic value.

 

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