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Methods of valuation of Companies
Valuation is an exercise or process to assess the worth of an enterprise or a property. Common valuation terms that relate to a company’s capital structure are equity value, enterprise value and invested capital value. Stated differently, enterprise value is equal to the company’s invested capital less its cash (i.e. Enterprise Value = Equity Value + Debt – Cash)
Valuation is an exercise or process to assess the worth of an enterprise or a property. Common valuation terms that relate to a company’s capital structure are equity value, enterprise value and invested capital value. Stated differently, enterprise value is equal to the company’s invested capital less its cash (i.e. Enterprise Value = Equity Value + Debt – Cash)
Methods of valuation of Companies
Valuation is an exercise or process to assess the worth of an enterprise or a property. Common valuation terms that relate to a company’s capital structure are equity value, enterprise value and invested capital value. Stated differently, enterprise value is equal to the company’s invested capital less its cash (i.e. Enterprise Value = Equity Value + Debt – Cash)
Methods of Valuation:
For Valuation of an enterprise or a property there are two types of Methods
General Methods
Methods which are prescribed under Law