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Understanding asset-based valuation and its different types
short by / on Friday, 18 July, 2025
Asset-Based Valuation (ABV) estimates a business's value by subtracting total liabilities from total assets. Key types include the Asset Accumulation Method, Adjusted Net Asset Method (market-adjusted book values), Excess Earnings Method (tangible assets + intangible value from excess earnings) and Liquidation Value Approach. ABV is ideal for asset-heavy firms, mergers or liquidations.