valuation methodology

Valuation methodology is the process used to determine the worth of an asset or business. It involves analyzing financial data, market conditions, and comparable assets to estimate value. Common methods include assessing a company's current financial performance, projecting future earnings, or comparing it to similar entities. The goal is to arrive at an accurate, well-founded estimate of value, which can be used for investment decisions, sales, or financing. Essentially, it’s a structured approach to figuring out what something is truly worth based on relevant information and realistic assumptions.