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How to Value an SME—An Introductory Guide

Valutico

Recognized as firms with under 250 employees, their accurate valuation is highly important for many finance professionals. Valuing a Small and Medium-sized Enterprise (SME) involves assessing the company’s financial performance, assets, market position, and growth potential. Discounted Cash Flow analysis), Market Approach (e.g.

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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. There are three primary methodologies used to value SMEs: the Asset-based Approach, Income Approach, and Market Approach.