Net asset valuation

An asset-based valuation may use accounting carrying amounts, estimated realisable values or replacement values, depending on purpose. Deduct relevant liabilities and consider omitted assets, disposal costs and other adjustments. Accounting net assets need not equal market equity value because internally generated capabilities, future earnings and risk may not be captured. A liquidation estimate and a going-concern estimate answer different questions. Avoid adding individually valued assets to a cash-flow valuation that already reflects their contribution, as that can double-count value.