Value Scope

JULY 21, 2020

Intangible asset valuation concepts can and should be applied to unique ESG cash flows. This work can be used to reconcile and support an adjustment to the CAPM, then the WACC, via Alpha and Beta. Adjustments to Beta can accomplish this. The re-levered Beta for the private company we were valuing was 0.56.

Intangible Assets 130

Intangible Assets Beta Alpha Unlevered Beta 130

Valutico

SEPTEMBER 13, 2023

Key methods include the Income Approach, which estimates future cash flows, the Market Approach, comparing with similar businesses, and the Asset Approach, valuing tangible and intangible assets. However, market information required for CAPM, such as beta coefficients and risk premiums, may not be available for SMEs.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis Asset-based Approach Intangible Assets 52

Valutico

AUGUST 10, 2023

Asset-based Approach : This method functions like an inventory check, summing up a company’s tangible and intangible assets and subtracting liabilities, resulting in the company’s net asset value. The discount rate is another contentious area.

Discounted Cash Flow 52

Discounted Cash Flow Asset-based Approach Intangible Assets Business Valuation 52

Equilest

JUNE 13, 2023

Asset-Based Approach The asset-based approach values the business by assessing its tangible and intangible assets. Tangible assets include equipment, vehicles, property, and inventory, while intangible assets encompass the business's reputation, customer relationships, and intellectual property.

Business Valuation 52

Business Valuation Asset-based Approach Appraisal Intangible Assets 52

Equilest

JUNE 10, 2023

Asset Approach The asset approach determines the value of a tax preparation business based on its net asset value. This method considers the fair market value of the business's tangible and intangible assets, including equipment, software, client lists, and intellectual property.

Business Valuation 40

Business Valuation Fair Market Value Marketability Technology 40

Value Scope

SEPTEMBER 24, 2020

Will ESG assets be recorded on balance sheets one day soon, just as intangible assets such as goodwill and intellectual property are recorded today? Adjustments to Beta can accomplish this. For example, in a recent valuation we completed, the mean unlevered Beta of a group of 10 comps was 0.58.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130