Valuation Techniques
Valuation techniques are methods used to determine the worth of an asset, company, or investment. Common approaches include the Discounted Cash Flow (DCF) method, which estimates future cash flows and discounts them to present value, and the Comparable Company Analysis, which evaluates similar companies to derive a value based on market multiples.
Another popular technique is the Precedent Transactions Analysis, which looks at past transactions involving similar assets to establish a benchmark value. Each technique has its strengths and weaknesses, and the choice often depends on the specific context and available data.