Top 3 Valuation Methods Used by Accounting Professionals

Top 3 Valuation Methods Used by Accounting Professionals

Business valuation underpins critical financial decisions and strategic planning. Stakeholders rely on precise valuation for investment, mergers, and acquisitions. Accounting professionals employ three primary valuation methods—market-based, income-based, and asset-based—to navigate the complexities of value estimation, each offering unique insights into a company’s worth. These methods not only inform stakeholders about the financial health of an entity but also shape investment strategies and business operations.