Which of the following valuation methods simply totals the value of all of the hard assets of an organization and adds in some value for goodwill?
A)Asset-based valuation
B)Market estimation valuation
C)Price/earnings valuation
D)Capitalization of earnings valuation

Question

Quizplus · Accepted Answer

Asset-based valuation simply adds up the value of all the hard assets of an organization, such as buildings, equipment, inventory, etc., and adds in some value for goodwill (if any). It is a simplistic approach that doesn't account for the potential earning capacity or future growth of the organization.

Which of the Following Valuation Methods Simply Totals the Value