Planning Litigation Related Issues Bankruptcy A valuation estimates the worth of a company by setting values for all tangible and intangible assets, including real and personal property and goodwill. Value is a function and reflection of the company's expected future performance at a given date, based on the most likely prospects for the economy, industry, company, and market for comparable investments. The valuation process involves a constructive and contextual examination of the business and its environment. Pertinent financial, tax, operational, economic and industry data are collected, analyzed and interpreted to arrive at the value of the business. While the basic data to be considered typically includes financial, tax, operational, industry and economic conditions, statistics and trends, the intended use of the valuation may dictate the process.
Different methodologies are acceptable for different purposes.