Business Valuation


DEFINITION of 'Business Valuation'

The process of determining the economic value of a business or company. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership and divorce proceedings. Often times, owners will turn to professional business valuators for an objective estimate of the business value.

BREAKING DOWN 'Business Valuation'

The field of business valuation encompasses a wide array of fields and methods. The tools and methods can vary between valuators, businesses and industries. Common approaches to business valuation include review of financial statements, discounting cash flow models, and similar company comparisons.

  1. Weighted Average Cost Of Capital ...

    Weighted average cost of capital (WACC) is a calculation of a ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  3. Asset-Based Approach

    A type of business valuation that focuses on a company's net ...
  4. Adjusted Net Asset Method

    A business valuation procedure used in acquisition accounting ...
  5. Asset Valuation

    A method of assessing the worth of a company, real property, ...
  6. Capital Asset Pricing Model - CAPM

    A model that describes the relationship between risk and expected ...
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