Valuation is the process of determining the current worth or value of an asset or a company. It involves various methods and techniques to assess the economic value based on multiple factors.
The Market Approach determines value by comparing the subject asset or company to similar ones that have been sold recently. It involves analyzing market prices of comparable assets or businesses.
The Asset-Based Approach calculates the value of a company based on the net asset value (NAV), which is the difference between total assets and total liabilities.