valuation methodologies

Valuation methodologies are tools used to estimate the worth of an asset or a business. Common approaches include: 1. **Income-based**: Projects future earnings and discounts them to present value (like predicting earnings from a rental property). 2. **Market-based**: Looks at comparable assets or businesses recently sold to gauge value. 3. **Asset-based**: Calculates value based on the company's assets minus liabilities, like summing the value of all possessions and subtracting debts. These methods help investors, buyers, and sellers make informed decisions.