valuation techniques

Valuation techniques are methods used to determine the worth of an asset, business, or investment. Common approaches include the income approach, which estimates value based on future earnings or cash flow; the market approach, which compares the asset to similar, recently sold items; and the cost approach, which calculates value based on the cost to replace or reproduce the asset minus depreciation. These techniques help investors, buyers, and sellers make informed decisions by providing a structured way to assess value based on current data and expectations.