Whether you intend to sell buy a company or business, you must know previously how much it is worth. In this scope, you must talk to specialists
For the determination of the value of a company, it must be selected a method that takes in consideration the type of assets involved and the market in which the company is comprised. There are several methods of evaluation, but the ones commonly used world-wide, and that normally we use they are:
1)The Market Method which takes in consideration the application of the quotation of a company in a stock exchange.
The valuation of a company in the stock exchange market indicates the admission of a significant amount of its shares by its quotation in the Stock exchange market, as well as significant levels of liquidity. This method is accompanied by the application of the Cash Flow Method, to assess whether its quotation is above or below the economics reality.
2) The Adjusted Patrimonial Value Method, which takes in consideration the accounting value of Equity, adjusting the assets and liabilities to the value of market. Thus, when fixed assets related to property exist, patrimonial value of these assets must be used to evaluate its real present value.
3) The Cash Flow Method (Discounted Cash Flow - DCF), which consists on updating the value of future flows, at a tax discount rate or update in a determined secular horizon and esteem a residual value, should it exist.