Business Valuation

In today’s fast-paced business world, accurate company valuation is critical for entrepreneurs, investors, and stakeholders. Whether it’s for raising capital, selling a business, merging with another company, or even resolving disputes between partners, knowing a company’s true worth is essential.

However, valuation is often misunderstood, leading to overinflated expectations, underestimations, and financial missteps. Many businesses make critical mistakes by focusing on revenues or assets without considering the most important financial metric: cash flow.

This article explores how businesses should approach valuation, the common pitfalls, and the key financial principles that determine a company’s market value.