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Do Your Own Business Valuation - Part 7: Income-Based Valuation Methods

There are 3 approaches to valuing a business – market, income and asset. This article covers the income approach.Types of Earnings There are many types of earnings used in business valuation methods. Here are the most common ones with brief explanations. It is extremely important to use the correct type of earnings for the selected method.Earnings before taxes (pre-tax earnings) - Many valuation methods use pre-tax earnings.
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