Business valuation is essential for investors, owners, and stakeholders to understand a company’s true worth. Different situations require different valuation methods, each with unique strengths.
The most common methods include:
- Market Approach: Compares similar businesses to estimate value—useful for mature industries.
- Income Approach: Calculates present value of future earnings—ideal for steady cash flow companies.
- Asset-Based Approach: Values net assets minus liabilities—best for asset-heavy firms.
- Discounted Cash Flow (DCF): Projects future cash flow discounted to present—great for growth businesses.
- Cost Approach: Based on replacement costs—used when other data is scarce.
Strategists Consultant advises clients on selecting the right method based on their business type, purpose of valuation, and market conditions in the UAE.
Understanding these methods ensures you get an accurate and fair valuation that supports strategic decisions, funding, or sale negotiations.