Income Approach

The income approach appraisal methods calculate a value for the business based on its estimated future income stream or cash flow. You open the worksheets for the income approach methods from the Appraisal \ Income Approach folder.

Shared Worksheets

The following worksheets are shared by all of the income approach methods:

bAdjusted Non-Cash Items

bLong Term Sustainable Growth

bThe sheets in the Duff and Phelps folder

bCompany Specific Risk

bThe sheets in the Risk Rate Component Model folder

Valuation Methods

BVM Pro supports four income approach methods:

bCapitalization of Earnings Method

bSummary Discounted Cash Flow Method

bDetailed Discounted Cash Flow Method

bCapitalization of Excess Earnings Method