November 2003
Beginner to intermediate
393 pages
14h 2m
English
Content preview from Raising Entrepreneurial Capital
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Chapter 5
Valuation—Survey of Methods
CHAPTER GOALS
In this chapter you will learn the basic determinants of firm valuation.
You will learn several techniques to carry out the actual valuation of a
business. The methods covered in the chapter are:
. asset-based valuation
. valuation based on market comparables
. capitalization of earnings
. excess earnings app roach
. discounted cash flow (DCF) valuation, or present value of the firm’s
‘‘free’’ cash flows
A variety of methods are used because none are perfect, but several offer
important insight as to the drivers of value in your business. You will learn
methods to assess the risk of the business in order ...