Slide 1

Excess Earnings Valuation

This approach values the assets of the company based on their ability to generate earnings in
excess of what would be expected for a company of its size and industry.

Value of the firm = Value of Intangibles + Value of Working Capital + Value of Fixed Assets

Slide 2

Adjusted Book Value Method

This method involves adjusting the company’s assets as reported on the company’s books to
their realizable values to determine the value of the company. The net value of all the assets
and liabilities would be comparable to market value.

Slilde 3

Adjusted Net Assets Method

This method is used to value a business based on the difference between the fair market value
of the business assets and its liabilities.