Remove Asset-based Approach Remove Discounted Cash Flow Remove Price to Earnings Remove Risk Premium
article thumbnail

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). These methods offer unique insights and serve different purposes.

article thumbnail

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.