Talk:Valuation (finance)

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The dicussion of a mining project is not a financial valuation. It should be in another article.


What is the best way to value intangible assets?

Simiply there is no best way to value an intangible assets because valuation is extremely subjective.

One simple way to value an intangible assets, such as patents and trademarks, may be valued based on expected Royality payments, which are subjective. If the royality stream is current and constant, the intanglible may be valued as a mulitple of its revenue stream. —The preceding unsigned comment was added by 71.196.5.25 (talk • contribs) 20:41, 9 October 2006.

[edit] Valuing an IT company

IT company generally have intangible assets as in the form of softcodes,if the company goes for liquidiation,the market value of these codes is nowhere as compare to the inputs of preparing it(huge technical staff costs,machines and technology involved) This is the primary reason that IT companies are debt free or they are not levered to huge extents.This means Tax-Sheilds are very less in case of IT firms.They are generally equity financed or internally financed.Valuation of an IT company is completely based on expected cash flows. —Preceding unsigned comment added by Jain puneet (talkcontribs) 13:23, 16 May 2008 (UTC)

[edit] Valuing Business in Mergers & Acquisitions

Valuing Businesses in M&A is very critical.It is Unwinding the worth of busines not just its assets.However,its not neccessary that value drivers will appear on Balance Sheet like innovative and creative staff would not be mentioned in the firm's accounting statements. It is availability of Data which decides what Method to use to value a firm.But,generally more than one method is used to endorse the common understanding.Difference in value would be due to information asymmetry,Transaction Costs etc.Jain puneet (talk) 16:00, 27 May 2008 (UTC)