Several methods can be used to assign monetary values to a business. Some of the most common include:
1. Discounted Cash Flow (DCF) Analysis: This method estimates the value of a business based on its future cash flows, discounted back to present value. 2. Comparative Market Analysis: This involves comparing the business with similar businesses that have recently been sold. 3. Asset-Based Valuation: This method calculates the value of the business based on its net asset value (assets minus liabilities).
Each method has its advantages and limitations, and often a combination of methods is used to get a more accurate valuation.