Overview of Business Valuations
By CA Niketa Agarwal
Valuation involves high degree of professional judgement, knowledge of business, analysis of facts, interpretation, developing financial models, methods and procedures, which may result into different conclusions in each given situation. It is both science as well as an art. Though quantitative in nature, the valuation methods require inputs that require quite a lot of subjective judgement. The Management of companies seek help of professionals like Chartered Accountants or Investment Bankers to value intrinsic worth of business / shares. This article seeks to provide an insight into the different methodologies adopted for the purposes of valuation.