What is Business Valuation? Business valuation is the series of various methods and techniques of calculating the worth of a business run by a firm or entity. Valuation is needed for many reasons such as capital budgeting, investment analysis, financial reporting, merger, and acquisition, determining statutory liability and during the litigation process. Wealth comprises of assets and liabilities. Valuation of assets and liabilities are made to reflect the wealth position of a firm or entity through the balance sheet and to supply the logistic to the measure of periodical income of the firm through profit and loss account. Business Valuation Types of a Value Book Value: It is the value of assets as carried on the balance sheets. Liquidation Value: It is the estimated price that the firm would receive by selling its assets if it were going out of the business. Going Concern Value: It is the value of the firm or an entity as an operating busines...