Excess Earnings Method - Business Valuation

Excess Earnings Method - Business Valuation

Assessment

Interactive Video

Business

University

Hard

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The video explains an approach to valuing a business by combining asset-based valuation with projected cash flows from intangible assets. It details how to estimate returns from tangible and intangible assets, using capitalization rates to determine their value. The excess earnings method is highlighted, particularly for startups reliant on intellectual property. An alternative approach using normalized returns is also discussed.

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What new insight or understanding did you gain from this video?

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