Venture Capital Method

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

[cite] Next Article: First Chicago Method Back to: ECONOMICS, FINANCE, & ANALYTICS Venture Capital Method The venture capital method (VC Method), as the name implies, is most commonly used in the venture capital industry and for valuing startup ventures. As...

First Chicago Valuation Method

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

[cite] Next Article: Strategic Considerations in Valuation Back to: ECONOMICS, FINANCE, & ANALYTICS The First Chicago Method of Business Valuation The First Chicago Method is a hybrid approach that employs multiples to derive a terminal value and discounts future...

Strategic Considerations in Valuation

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

[cite] Back to: ECONOMICS, FINANCE, & ANALYTICS Strategic Considerations in Valuation Subjective factors are routinely used to either discount or justify a premium valuation. For example, a specific company may derive a valuation for a firm based upon strategic...

Issues with Market Based Methods

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

[cite] Next Article: Overview of Income-Based Valuation Back to: ECONOMICS, FINANCE, & ACCOUNTING Issues Associated with Market-Based Valuation Methods As will all valuation methods, market-based valuation methods have negative aspects – particularly when...

Income Based Valuation Approaches

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

[cite] Next Article: Earnings Capitalization Method Back to: ECONOMICS, FINANCE, & ACCOUNTING Overview of Income-Based Approaches Income based approaches value a business based upon the past, current, or expected future cash flows of the business and the risk that...

Earnings Capitalization Method

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

[cite] Next Article: Build-Up Method Back to: ECONOMICS, FINANCE, & ANALYTICS Earnings Capitalization Model The earnings capitalization model values the company based upon the company earnings. To determine normalized earnings, you calculate a weighted average of...