
38 The Financial Times Guide to Corporate Valuation
capital markets can be linked directly to operating performance measure-
ments. For a further discussion on the use of EVA in incentive programmes,
see Chapter 9, ‘Value-based management’.
Valuations based on assets
Net asset valuation
This is perhaps the simplest form of company valuation. Basically, net
asset valuation is the difference between the assets and liabilities based on
their respective balance sheet values, adjusted for certain accounting prin-
ciples. In other words, it is the adjusted value of the equity on the balance
sheet (see Table 4.1).
Table 4.1: Balance sheet – Mobitronics ...