alternative methods of valuation

Alternative valuation methods are ways to estimate a company's worth beyond traditional approaches. They include comparable company analysis, which looks at how similar businesses are valued; precedent transactions, examining prices paid for similar companies in past deals; and discounted cash flow (DCF), projecting future earnings and discounting them back to today's value. Each method offers a different perspective, providing a more comprehensive understanding of value, especially when the company's specifics or market conditions make standard methods less reliable. Combining these approaches helps ensure a well-rounded valuation.