Knowing what business is worth and what determines its value is
prerequisite for intelligent decision making. It is the process of
determining the "Economic Wealth" of company under
certain assumptions and limiting condition and subject to data
available on the valuation date. It is pertinent to mention that
the valuation of a business is not an exact science and ultimately
depends upon a number of factors like the purpose of valuation,
stage of business, past financials, expected financial results,
industry scenario, market recognition etc.
What Is Business Valuation?
The Business Valuation is a process to estimate
the economic worth of stakeholder's
interest in a business.
To determine the value of any business, the reasons
for and circumstances surrounding the
business valuation must be pre ascertained.