Valuation Methods Articles
How appraisers actually value a business — income, market, and asset approaches, goodwill, discounts, and professional-practice specifics.
How to Value a Business with Negative EBITDA: The Turnaround Valuation
Learn how business valuation works when EBITDA is negative, including turnaround DCF analysis, market approach limits, asset approach considerations, examples, and practical appraisal steps.
Intellectual Property (IP) Valuation: How to Price Patents, Trademarks, and Trade Secrets
Learn practical IP valuation methods for patents, trademarks, and trade secrets, including DCF, relief-from-royalty, market, cost, and business appraisal issues.
Valuing Digital Assets: Domain Names, Source Code, and Proprietary Databases
Learn how to value domain names, source code, and proprietary databases using discounted cash flow, EBITDA, market approach evidence, asset approach analysis, and business appraisal diligence.
Business Valuation for Charitable Contributions of Private Company Stock
Learn how private company stock charitable contributions are valued, what qualified appraisal and Form 8283 issues to coordinate, and how valuation methods support the deduction.
Fair Market Value vs. Fair Value in Business Valuation
Learn the difference between fair market value and fair value in business valuation, tax, shareholder, accounting, and appraisal contexts, with examples and checklists.
When to Update a Business Valuation After a Major Event
Learn when a major event makes a business valuation stale, how to choose a refresh or full appraisal, and what documents owners should prepare.
Valuation of Intellectual Property (IP): How to Price Patents and Trademarks
Learn how professional appraisers value patents and trademarks using income, market, and cost approaches, royalty relief, DCF, due diligence, and risk analysis.
Understanding the Discount for Lack of Marketability (DLOM) in Private Companies
Learn what a discount for lack of marketability (DLOM) is, when it applies, how appraisers support it, and how it affects private-company business valuation.
How to Value a Dental or Medical Practice With Industry-Specific Drivers
Learn how to value a dental or medical practice using the income, market, and asset approach, with industry-specific drivers, DCF, EBITDA, case studies, and practical guidance for owners, investors, and advisors.
How to Value a SaaS Company: ARR, Churn, and Growth Rates Explained
Learn how SaaS company valuation works using ARR, churn, growth rates, DCF, EBITDA, market approach, asset approach, and professional business appraisal methods.
How to Value an E-commerce Business: Key Metrics and Multiples
Learn how to value an e-commerce business using revenue quality, gross margin, EBITDA/SDE, DCF, market multiples, inventory, working capital, and risk analysis.
Valuing a Construction Company: WIP, Backlog, and Equipment Adjustments
Learn how a professional business valuation analyzes construction-company WIP schedules, backlog quality, equipment, EBITDA, discounted cash flow, market approach, and asset approach issues.
Using the Asset-Based Approach for Liquidation or Asset-Heavy Companies
Learn when to use the asset approach, how adjusted net asset value and liquidation analyses work, and how to reconcile assets, EBITDA, DCF, and market evidence in a business valuation.
Capitalization of Earnings vs. Discounted Cash Flow: Choosing the Right Income Approach
Learn when to use capitalization of earnings versus discounted cash flow in a business valuation, including formulas, examples, risks, documentation, and practical guidance for a defensible business appraisal.
EBITDA vs. Seller's Discretionary Earnings (SDE): Which Should You Use?
Learn when to use EBITDA or Seller's Discretionary Earnings (SDE) in a private business valuation, with add-back examples, calculation bridges, valuation methods, buyer-ready checklists, and practical case studies.
How to Value a Business with No Profit
Learn how to value a business with no profit using revenue, asset, market, and DCF methods, with risk adjustments, documentation tips, and professional valuation support.
Valuing a Business with No Revenue: A Guide for Startups
Valuing a startup that has **no revenue** (or even no product yet) might seem like an impossible task. How can you put a dollar figure on a business that...
Minority Interest Discount in Business Valuation
MetricRange/ValueSource **Inter-Quartile Discount Range** 15%-45% Court decisions 2010-2025¹ **US Control Premium Median** 30.8% FactSet/BVR Q2 2025...
Valuing a Professional Practice (Dental, Medical, Legal)
Learn how dental, medical, and legal practices are valued, including income, market, asset, goodwill, tax, health-care regulatory, ethics, and divorce considerations.
Is My Business Worth More Than Its Assets? Understanding Goodwill
**Executive Summary:** Many profitable businesses are worth significantly more than their tangible assets suggest, with this 'hidden premium' often...
What Are the Most Common Business Valuation Methods?
Business Valuation is the process of determining the economic value of a business or company. It provides an objective estimate of what a business is...