ENTREPRENEURSHIP

Detailed explanation-1: -Earnings power value (EPV) is derived by dividing a company’s adjusted earnings by its weighted average cost of capital (WACC). While the formula is simple, there are a number of steps that need to be taken to calculate adjusted earnings and WACC.

Detailed explanation-2: -Value is the monetary, material, or assessed worth of an asset, good, or service. “Value” is attached to a myriad of concepts including shareholder value, the value of a firm, fair value, and market value. The process of calculating and assigning a value to a company or an asset is called valuation.

Detailed explanation-3: -When valuing a company as a going concern, there are three main valuation techniques used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions.

Detailed explanation-4: -Asset valuation is the process of determining the fair market value of an asset. Asset valuation often consists of both subjective and objective measurements. Net asset value is the book value of tangible assets, less intangible assets and liabilities.