Asset-based Valuation Models

Premium

Asset-based models determine the fair value of a stock by calculating the market value of the firm's assets and subtracting the market value of its liabilities and preferred stock.

Equity Value = Market Value of Assets -- Market Value of Liabilities

Since the firm's assets and liabilities will be at book value, the analysts will adjust these values to their fair value or market value.

Continue Reading
Premium Content

This tutorial is a part of the course Equity Valuation. This is a premium course. The purchase options for the course are provided below. With this course, you get access to complete course content, source code, practical exercises, and all resources that are a part of the course.

Lifetime Premium Membership
$250
$179

Get unlimited access to all courses and premium content

Join Premium
What's Included:
Complete access to course content and updates
All downloadable resources
Interactive course quizzes
Practice exercises and sample code
Ad-free learning experience