What are the different valuation methods

Question

Accepted Answer

Valuation methods include market approach, income approach, and asset-based approach.

Market approach: Compares the company to similar publicly traded companies.
Income approach: Estimates the value based on the present value of expected future cash flows.
Asset-based approach: Calculates the value based on the company's assets and liabilities.
Discounted Cash Flow (DCF) method: Estimates the value based on the company's projected cash flows and discount rate.
Comparable Company Analysis (CCA): Compares the company to similar publicly traded companies based on multiples like P/E ratio.