Asset-Based Valuation is a method used to determine the value of a company based on its assets. This approach involves calculating the total value of tangible and intangible assets, such as property, equipment, and intellectual property, and then subtracting any liabilities. It provides a clear picture of what a company owns and owes, making it useful for investors and stakeholders. This valuation method is often employed in situations like mergers and acquisitions, where understanding the underlying assets is crucial. It contrasts with other methods, such as Income-Based Valuation or Market-Based Valuation, which focus on earnings or market comparisons, respectively.