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The Complete Business Valuation Formula Guide: 10 Essential Methods

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Liquidation Value Business Valuation Formula Calculate the liquidation value with: Liquidation Value = Current Liabilities – Value of Assets If a business's current liabilities are $100,000 and the value of its assets is $150,000, the liquidation value would be: $100,000 - $150,000 = -$50,000.

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Company Valuation Methods—Complete List and Guide

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The income approach estimates value based on future earnings, using techniques like the discounted cash flow analysis. The market approach compares the company to similar publicly traded businesses, or those recently sold or involved in some transaction.

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How can I learn to valuate a company?

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Calculating Free Cash Flow: Free Cash Flow (FCF) is a crucial metric used in valuation, representing the cash generated by the business available for distribution to investors and debt repayment. EquiTest, for example, provides a user-friendly interface that simplifies the valuation process.