Why 3 approaches give different Valuations ? | Valuation Approaches Explained by Expert скачать в хорошем качестве

Why 3 approaches give different Valuations ? | Valuation Approaches Explained by Expert

Learn startup valuation and business valuation methods from expert Vikram Sharma. Discover the 3 core valuation approaches (Asset, Income, Market) and when to use each method. This complete guide covers valuation techniques for founders, investors, CFOs, and finance professionals. 🎙️ Featuring: Vikram Sharma, MD & Founder of Pure Value Global 📌 25+ Years Experience | 1000+ Valuations Completed If ten people try to value the same business, will they all reach the same number? Absolutely not. Because valuation is not a number — it's a perspective. In this episode, we break down one of the most misunderstood areas in finance: How valuation is actually done and how experts decide the right approach and method. 🎯 What We Discuss in This Episode 1️⃣ How valuers choose the right valuation approach? When a valuation assignment comes in, how does an expert decide which approach to apply? 2️⃣ Asset Approach/Cost Approach — When and why it should be used? Perfect for asset-heavy companies, manufacturing setups, distressed businesses, etc. 3️⃣ Income Approach — The most widely used approach How this approach captures future earning potential? 4️⃣ Market Approach — Understanding comparables & real market data How it differs from the Cost and Income approaches? 5️⃣ Can all three approaches be applied to the same company? A practical explanation with real-world logic. ⏱️ Timestamps 00:00 What Comes First in Company Valuation? 00:22 Why Valuation Purpose Matters (Biggest Mistake Founders Make) 01:14 Why 10 Valuers Give 10 Different Valuations 01:25 Meet Vikram Sharma | MD & Founder, Pure Value Global 01:42 How Professional Valuers Start a Valuation Assignment 02:02 Understanding Client Requirements & Transaction Purpose 02:17 Why You Should Never Jump Directly to Valuation Methods 03:30 Three Core Valuation Approaches Explained 03:55 Approach vs Method – Most People Get This Wrong 04:32 Asset Approach Explained (Balance Sheet Focus) 04:54 Income Approach Explained (Future Earnings & Cash Flows) 05:00 Market Approach Explained (Live Market Valuation) 05:11 Can You Use More Than One Valuation Approach? 05:24 When Only One Valuation Approach Is Possible 06:41 How Valuers Assign Weightage to Each Approach 07:16 There Is No Fixed Formula in Valuation – Here's Why 08:09 Why 80% Founders Don't Understand Valuation 08:33 Why Valuer's Judgment Must Be Final 08:39 Emotional Bias: Why Founders Overvalue Their Business 09:08 Factor #1: Nature of Assets 09:46 Factor #2: Future Earnings Potential 10:18 Factor #3: Availability of Market Comparables 11:07 Valuation Through Past Performance (Asset-Based View) 12:05 Valuing a Company Using Historical Financials 12:32 Valuation Based on Future Growth & Cash Flows 12:52 Valuation Based on Current Market Conditions 19:49 What Is Income Approach in Valuation? 21:20 Discounted Cash Flow (DCF) Explained Simply 23:52 Why Income Approach Is Sensitive to Assumptions 24:36 Risk, Discounting & Startup Valuations 25:01 What Is Market Approach? Live Market Testing 25:35 Using Listed Companies for Valuation Comparison 26:24 Using M&A Deals for Valuation Multiples 26:49 Can You Use Global Companies for Valuation? 29:52 When No Comparable Companies Exist 29:58 Valuing New & Disruptive Businesses 31:20 Valuing Manufacturing Businesses Step-by-Step 31:56 Valuation in Mergers & Acquisitions (M&A) 33:04 Case Study: Electric Appliances Manufacturing Company 35:07 Why Valuation Is a Blend of Multiple Approaches 35:19 Key Learnings for Founders, Investors & Students 35:33 Where to Learn Valuation in Detail 35:38 Closing Thoughts | Pure Value Talks 👤 About the Guest Vikram Sharma Founder & MD — Pure Value Global 📌 25+ Years in Valuation & Transaction Advisory 📌 1000+ Valuations Completed 📌 Global expert in Valuation, Strategy & Financial Analysis This podcast will give you the clarity you need — in simple, practical language. Perfect for startup founders, business owners, investors, CFOs, finance students, analysts, and valuation learners. 🔗 Learn More For valuation services or detailed learning, visit: 🌐 www.purevalueglobal.com For more knowledge, subscribe to 📺 @purevaluetalks Instagram:   / purevaluetalks   Facebook:   / purevalueadvisors   ⚠️ Disclaimer The content of this podcast is for informational and educational purposes only. It should not be considered financial, legal, tax, or investment advice. Valuations discussed are illustrative in nature and may not apply to your specific situation. Always consult a qualified professional before making financial, strategic or business decisions. The host and the production team disclaim any liability for actions taken based on this content. #StartupValuation #BusinessValuation #ValuationMethods #Entrepreneurship #VentureCapital #FinancialModeling