Company Valuation Introduction

Company Valuation Introduction

See Also:
Cost of Capital
Capital Asset Pricing Model
Common Stock
Cash Flow After Tax
Discount Rate
Why Valuation Matters
Valuation Methods
Liquidation Valuation

Company Valuation Introduction

How do you value a company and its equity? How do you calculate a company’s fair value? Have you overvalued or undervalued your company? As we dive into our company valuation introduction, we are going to look at the following are the three approaches to valuation:

DCF Approach

The most fundamental approach is DCF approach, which extends the present value principles to analyze projects to value a company. The following four factors determine the value of a company:

Market Valuation Multiples

Market valuation multiples which include the following:

Comparable Transactions

Comparable transactions approach of valuing a company involves using a price multiple to evaluate whether an asset is relatively fairly valued, or undervalued, or overvalued when looked at the comparable transactions that have taken place in the industry and compared to a benchmark value of the multiple.
Valuation can be difficult if you don’t have much experience. But with our guide, you’ll learn how to value your company AND remove any destroyers that are impacting your company’s value. Download the Top 10 Destroyers of Value to maximize the value of your company.
company valuation introduction

Strategic CFO Lab Member Extra
Access your Exit Strategy Execution Plan in SCFO Lab.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs

company valuation introduction

Strategic CFO company logo with slogan.

Transform your finance operations with NearSourcing™ Accounting Solutions

and see the benefits firsthand with a
FREE Consultation Session.

Share This Article
Top Articles


Financial Leadership Workshop


August 7-10th, 2023

Innovative CFO logo, "Creating Success Through Financial Leadership" slogan.

Empower your business with NearSourcing™ Accounting Solutions

and take advantage of expert financial strategies at reduced costs

Related Blogs
Scroll to Top
WIKICFO® - Browse hundreds of articles
Skip to content