Based on the Principle of Future Benefits. Determines that the value of a company is the sum of the present value of future income, discounted at a rate that reflects the cost of capital.
Based on the Substitution Principle. The value of the target company depends on how the market values similar companies from an operational and financial point of view.
- Multiples of the market for comparable business transactions
- Operational performance indicators (sales, EBITDA, Net Profit, etc.)