Abstract: This chapter discusses asset-based assessment, market survey for funds, capitalization of earnings, excess earnings approach, discounted cash flow (DCF) valuation, and assessment of current value of the firm in order to learn the basic determinants of firm one is going to start. Although there are several techniques to carry out the actual valuation of a business, these are some used broadly. The need of more than one effective method is because none of them is perfect and because the evaluation of a firm's finance largely depends on its type and structure. A variety of methods offers important insights into the drivers of value in business. Learning methods to assess the risk of the business in order to capture the impact of risk on firm value is hence very useful. A review of ratio analysis can be used to measure risk and provide guidance for the estimation of the discount rate.
Publication Year: 2013
Publication Date: 2013-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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