Unlocking True Business Value: The Key to Accurate Valuations
The article discusses different ways to determine the value of a business: book value, market value, and intrinsic value. Book value is not a reliable measure of a business's worth. Market value is the company's total value based on its share price and number of shares. Intrinsic value is the true worth of a business, which a business valuation aims to find. The discounted cash flow model is a common method used to calculate intrinsic value by estimating the present value of future cash flows. This model helps in determining the actual value of a business.