New method for business valuation could revolutionize financial decision-making.
The article discusses the importance of calculating depreciation for estimating a company's value. It explains the spread function as the difference between ROIC/ROA and WACC for predicting a company's value. The article outlines a method for quantifying the total capital involved in a company's operations. It suggests a solution using a system of two equations for calculating a company's value and goodwill within the Value in Use concept. The article provides feedback between technical, strategic, and financial analyses, ensuring consistency in input parameters, including WACC estimation.