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Market-based methods like Comparable Companies Analysis and PrecedentTransactionsAnalysis offer relative measures of value based on market data. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value. Simplicity: Relatively easy to understand and implement.
DCF analysis estimates the value of a company based on its future cash flows, discounted back to the present value using a specific discount rate. PrecedentTransactionsAnalysis Finding recent M&A deals involving comparable businesses is the goal of the PrecedentTransactionsAnalysis.
Asset-Based Business Valuation Formula To determine the current value, apply: Current Value = (Asset Value) / (1 – Debt Ratio) For example, if a business has assets valued at $500,000 and liabilities at $100,000, the calculation would be: $500,000 / (1 - 0.2) = $625,000 2.
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Precedent Transaction Analysis 
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