Remove Beta Remove Intangible Assets Remove Price to Earnings
article thumbnail

How to Value an SME—An Introductory Guide

Valutico

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.

article thumbnail

How to value SMEs: A Simplified Roadmap

Valutico

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. Why Are SME Valuations So Unique and Challenging?