ABFM: Concepts and Practice · Part C: Valuation, Mergers and Acquisitions

Chapter 14: Valuation approaches

What a business is worth, and to whom: concepts of value, adjusted book value, the stock and debt approach, and who may value.

Open Chapter 14 in the e-book The book and its prices

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

14.1Why value, and which valuep. 185
14.2Asset-based: adjusted book valuep. 186
14.3Market-based: stock and debt, comparisonp. 187
14.4Income-based: DCF in outlinep. 188
14.5Choosing an approach, and the rulesp. 189
Exam traps and quick checksp. 190
Practice: 16 questions in three roundsp. 191
Answers, with every wrong option explainedp. 193
Make it stickp. 195
Chapter 14 on one pagep. 196

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.