Income Approach: Assesses the present value of expected future cash flows generated by the business. Techniques include Discounted Cash Flow (DCF) analysis and Capitalization of Earnings model.
Market Approach: Compares the company to similar publicly traded or recently sold companies. Utilizes metrics such as price-to-earnings (P/E) ratios or revenue multiples to derive a valuation.
Asset-Based Approach: Evaluates the company based on the value of its tangible and intangible assets. Deducts liabilities to determine the net asset value.
Specialized Valuations: Required for startup companies, distressed businesses, or industries with unique characteristics. Tailored analysis to address specific circumstances and challenges of the business.