hat are the main Owners Corporation Valuation methods? When valuing a company as a going concern, there are three main Owners Corporation Valuation methods used by industry professionals:
(1) discounted cash flow analysis
(2) comparable company analysis
(3) precedent transactions.
These are the most common Owners Corporation Valuation methods used in investment banking, equity research, private equity, corporate development, mergers and acquisitions (M&A), leveraged buyouts (LBOs), and most areas of finance.
As shown in the diagram above, when valuing a business or an asset, there are three different methods or approaches that can be used.
The cost approach looks at what it costs to rebuild or replace an asset. The cost approach method is useful for valuing real property, such as commercial Owners Corporation Valuation property, new construction, or special use property.
Financial professionals do not typically use it to value a going concern.
Next is the market approach, which is a form of relative Owners Corporation Valuation and is frequently used in the industry. Includes Comparable Analysis and Previous Transactions.