Understanding asset-based valuation and its different types
Asset-Based Valuation (ABV) estimates a business's value by subtracting total liabilities from total assets. Key types include the Asset Accumulation Method, Adjusted Net Asset Method (market-adjusted book values), Excess Earnings Method (tangible assets + intangible value from excess earnings) and Liquidation Value Approach. ABV is ideal for asset-heavy firms, mergers or liquidations.