In Market Approach value is determined by comparing the subject company or assets with its peers in the same industry of the same size and region. Most Valuations in stock markets are market based and it is based on the premise of efficient markets and supply & demand.
Market approach, also referred to as relative approach, is a valuation approach that uses prices and other relevant information generated by market transactions involving identical or comparable (i.e., similar) assets, liabilities or a group of assets and liabilities, such as a business. This is also known as relative valuation approach.
Common Methodologies under Market approach:
1) Market Price Method;
2) Comparable Companies Multiple Mehtod (CCM)
3) Comparable Transaction Multiple Mehtod (CTM)
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Business Valuation Consultant & Experts in Borivali, Mumbai | ValuGenius
Top Business Valuers in Mumbai. Our team of Business Valuation Experts In Mumbai will advise and serve you for business valuation & financial reporting.
It is important to have right approach before start of any work/endeavour.
Similarly, ICAI Valuation Standards 2018 recognizes three broad approaches to business valuation:
1️⃣ Income Approach - Involves Income / Future Income data;
2️⃣ Market Approach - Involves Market / relative / comparable data;
3️⃣ Asset Based (Cost) Approach - Involves cost data.
At @ValuGenius , we team of dedicated experts understand the need of the transaction and carry out valuation using appropriate valuation approach.
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☎️ Call: 88791 95030
🌐 Website: www.valugenius.in
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Under Valuation,
Value often depends on the Intended purpose of the valuation. i.e. the same business often has different value depending on the purpose of valuation.
Four broad categories
1) Valuation for transaction
2) Valuation for court case
3) Valuation for compliance
4) Valuation for planning
The primary role of valuation is that it provides both buyer and seller to start with negotiation.
Valuation plays major role in portfolio management, acquisition analysis, corporate finance, legal and tax purposes, etc.
We, at ValuGenius , truly understand the purpose and role of valuation before carrying out the assignment.
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☎️ Call: 88791 95030
🌐 Website: www.valugenius.in
#valugenius#valuation#genius#financeteam#mumbai#business#entrepreneurship#startup#financialgoals
