Corporate Valuation
Corporate Valuation is the process of determining how much a corporation is worth. There are standard ratios, tools, and methods that can be used to determine a corporation’s worth. Knowing its worth is very important when it comes to decisions regarding mergers, acquisitions, financial trouble, and market instability. The 3 main methods to calculate a corporation’s value are the cost approach, the market approach (relative value), and the discounted cash flow approach (intrinsic value). Understanding a company’s value is crucial to your success as an investor.
