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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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Market-based approaches gauge a company’s value by analyzing comparable market transactions and valuations. Asset-based approaches determine a company’s value by evaluating its underlying tangible and intangible assets. Adjustments are made for differences in growth prospects and market position.

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How can I learn to valuate a company?

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Market-Based Valuation Methods Comparable Company Analysis: This method involves comparing the target company's financial metrics and valuation multiples with similar publicly traded companies to arrive at a reasonable valuation.