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Business Valuation – Income Approach

Business Valuation – Income Approach

Business Valuation – Income Approach Business valuers often use the Income Approach as the primary business valuation approach. However, this approach assume that the business is profitable or expects to be profitable in the future. Business Valuation –...
2025 Cost of equity and valuation

2025 Cost of equity and valuation

Business valuation is linked to risk, and that risk is reflected in the cost of equity. The cost of equity is the return shareholders require. This article expores the costs of equity for 2025. Each year the “Dean of Valuation”, Professor Damodaran,...
Valuation risk and return

Valuation risk and return

Valuation risk and return are interrelated. That is because investors expect higher returns for increased risk. Higher returns reduce value. Increased valuation risk and increased expected returns The figure below summaries the expected returns for different classes...
Business Valuation – Income Approach

How to value a business?

How to value a business? According to the International Valuation Standards there are three Valuation Approaches to value a business: Market Approach, Income Approach and Cost Approach. Within each Valuation Approach there are Valuation Methods. Market Business...