What are the 3 main valuation methods?

Discounted Cash Flow Analysis (DCF) In this respect, DCF is the most theoretically correct of all of the valuation methods because it is the most precise.

4 Most Common Business Valuation Methods

7 Business Valuation Methods

There are three basic techniques to value a company: discounted cash flows (DCF), the multiples approach, and comparable transactions .

Three main types of valuation methods are commonly used for establishing the economic value of businesses: market, cost, and income ; each method has advantages and drawbacks. In the following sections, we’ll explain each of these valuation methods and the situations to which each is suited.8 Eyl 2021