Let us simply picture a company as a cash-based entity. Cash flows into the company in the form of revenue as it sells its products and services, and cash flows out as it pays its cash operating expenses such as salaries and taxes (except for interest expense which is a financing expense and not an […]
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Valuation during Covid-19 brings a new set of challenges for the valuers and analysts. While assessing the value of businesses, the valuers must keep in mind that while most businesses have been hit negatively, some businesses have benefitted from the pandemic as well. Some of the key factors impacting business value includes, dependence of business
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Companies often have multiple businesses across different segments. A company may require to \”hive off\” one of its businesses/segments, with a set of assets and liabilities assigned to them. Companies may have to sell off a segment or the undertaking as a whole. This sale is called a slump sale and does not require identification
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Valuers and Analysts often need to evaluate the BSE Sensex return for a variety of reasons. From assessing their portfolio returns to assessing the Market Rate of Return while assessing the Cost of Equity under Capital Asset Pricing Model (CAPM) among others. Here is how Sensex has performed over the years since it started. Date
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Many business owners and investors fail to understand the valuation process and its results. Here are some common business valuation myths and the underlying truths. Myth: You appraised the \”fair market value\” of my business. When I sell my business interest, this is the price I will receive. Truth: Fair market value (FMV) is different from a transactional (or strategic) value.
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Brand Valuation Explained: Methods, Standards and Business Benefits “Brand valuation measures the economic value of a brand and helps organisations make informed decisions about strategy, financial reporting, transactions and disputes. A strong brand can support customer loyalty, price premiums, more predictable demand and business growth. This article explains what brand valuation is, why it matters
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