Financial Glossary

Business Valuation

What is a Business Valuation?

Business valuation is the process of determining a company’s worth based on its financial performance, market value, and assets.

business valuation

How to Calculate Business Valuation?

  • Asset-Based Approach: Adds up the value of all business assets.
  • Earnings Multiplier: Estimates value based on future profit potential.
  • Market-Based Approach: Compares to similar businesses in the industry.

📌 Related: Balance Sheet | Financial Analysis

 

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