Valutico

MAY 19, 2025

The core idea behind relative valuation is to estimate a company’s value by comparing it to similar companies based on how the market prices their financial metrics. EV/EBITDA is a widely used multiple in this relative valuation approach. What is EV/EBITDA? Breaking down the multiple What is EBITDA?

EBITDA 52

EBITDA Enterprise Value Capital Structure EBIT 52

RNC

JANUARY 19, 2025

These changes can make valuation tools like the Price-to-Earnings (P/E) ratio unreliable and lead to wrong conclusions. It performs well in sectors where tangible assets account for a substantial portion of a company’s worth, such as manufacturing or real estate.

Discounted Cash Flow 52

Discounted Cash Flow Price to Earnings Intangible Assets Compliance 52

RNC

JULY 13, 2023

Asset-based Approach: The asset-based approach evaluates a business’s worth by considering its tangible and intangible assets. Tangible assets include machinery, inventory, and real estate, while intangible assets encompass intellectual property, goodwill, and brand reputation.

Business Valuation 52

Business Valuation Intangible Assets Fair Market Value Asset-based Approach 52

GCF Value

NOVEMBER 12, 2024

This method operates on the Principle of Substitution, which states that a buyer will not pay more for an asset than the price of a similar, comparable asset. Key comparability factors include revenue, cash flow, margins, and sale prices relative to Price to Earnings (P/E) ratios.

Discounted Cash Flow 52

Discounted Cash Flow Business Valuation Appraisal Intangible Assets 52

Sun Acquisitions

NOVEMBER 17, 2023

The valuation is based on key financial metrics such as Price-to-Earnings (P/E) ratios, Price-to-Sales (P/S) ratios, or Price-to-Book (P/B) ratios. Asset-Based Valuation: This method calculates the value of a company’s assets and liabilities, including tangible and intangible assets.

EBITDA 59

EBITDA Discounted Cash Flow Intangible Assets Comparable Company Analysis 59

Equilest

JUNE 5, 2024

Asset-Based Valuation This method focuses on the tangible and intangible assets of your business. Tangible assets include vehicles, equipment, and property. Intangible assets, like licenses and brand value, can be trickier to quantify but are equally important.

Intangible Assets 40

Intangible Assets Discounted Cash Flow Price to Earnings Business Valuation 40

Equilest

JUNE 27, 2024

This method is straightforward but may not capture the company's full potential, especially if it has significant intangible assets like brand value or customer relationships. This method often uses Discounted Cash Flow (DCF) analysis or EBITDA multiples to estimate value based on expected earnings.

Business Valuation 40

Business Valuation Intangible Assets Discounted Cash Flow Asset-based Approach 40