Understanding the Methods of Valuation
The most common methods/techniques used in the income approach are:
1. Capitalization of maintainable earrings; and
2. Discounted cash flow (DCF)
We believe that the DCF method would be the most appropriate method to value your business due to the following reasons:
• Historical results may not be indicative of its future earnings
• New alliances with partners
• New expansion plan with potential growth of the group
A valuation based on the DCF method requires the determination of the following parameters:
• Free cash flow to the company
• Discount rate
• Terminal value or Residual value
We would adopt the Future Earning/Income-based approach comprising discounting cash flow (DCF) as a technique to value your company/business.
How Fundforth can help in Business Valuation?
Fundforth Accounting Services is a leading financial consultancy in Dubai, UAE serving global and international client by providing business valuation in Dubai and company valuation in Dubai. As a consultant, we provide you with all the assistance that you need to calculate the intrinsic value of your business, using various financial methods, such as net asset value and discounted cash flows method, based on assumptions/factors beyond the number data. We support our assumptions with the given industry data and conclusions from extensive market research. Our team of analysts has the required experience of estimating the value of companies spread across different industries.