Which valuation approaches and methods are used by the BizEquity online valuation tool?

Each of the asset, equity and enterprise values reflect both an income approach (multiple of adjusted earnings/DCF factors such as expected growth, etc.) and a market approach (comparable sales method).

A valuation approach is general, e.g. Income approach, and comprised of different methods, e.g. Multiple of adjusted earnings, discounted cash flow analysis, etc.

In general, it is the asset sale and stock sale values which are most relevant from a transactional point of view, i.e. Buyers will acquire either "assets" or "equity" with the asset value typically consistent with enterprise value.

The asset sale value can be interpreted and presented as a multiple of discretionary earnings whereby the firm's revenue, profit, cash flow and asset level coupled with the impact of other factors such as expected growth, key man dependence, customer concentration,etc. and current economic and industry trends/multiples have determined the value of the business relative to the industry cohort.