Dictionary of Exit Planning Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 4

Search In Dictionary

Asset-Based Valuation

A method to value a business that adds the value of all the company's assets and subtracts the liabilities, leaving the net Value of its assets. Different approaches to Asset-Based Valuations include Book Value, Replacement Cost, Appraised Value, Liquidation Value and Market Value. Asset-based valuation methods ignore the importance of a company's earnings and cash flow. For this reason, this valuation approach is not typically used to determine the market value of a company that is being sold.