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How to Value an SME—An Introductory Guide

Valutico

The three main methods for SME valuation are the Income Approach (e.g. Discounted Cash Flow analysis), Market Approach (e.g. Comparable Companies Analysis), and Asset-based Approach (e.g. net asset value calculation). Why Are SME Valuations So Unique and Challenging?

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How to value SMEs: A Simplified Roadmap

Valutico

Discounted Cash Flow (DCF) Method: DCF, a method that calculates the present value of future cash flows, can be challenging to apply to SMEs due to data reliability and future projection issues. SMEs, with their unique structures, present specific challenges that can significantly influence their value.

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How to Value a Disaster Restoration Business

Equilest

Each approach provides a different perspective on the business's worth. Asset-Based Approach The asset-based approach values the business by assessing its tangible and intangible assets. Factors such as multiples, beta, and equity risk premium are required for accurate calculations.

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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

The DCF method takes the value of the company to be equal to all future cash flows of that business, discounted to a present value by using an appropriate discount rate. Context of DCF: There are three main approaches to calculating a company’s value. the asset-based approach also known as the cost-based approach, and finally 3.