Valuation

This is the process of determining the economic worth or value of an asset, business, property, or company. It is essential for making informed decisions in areas like investment, taxation, mergers and acquisitions, financial reporting, or fundraising. Valuation can be based on various methods such as market value (comparing with similar assets), income approach (based on expected future cash flows), or cost approach (based on replacement or reproduction cost). In business, accurate valuation helps stakeholders understand the true financial position, negotiate better, and comply with regulatory requirements. It plays a crucial role in both direct and indirect tax assessments, especially for transfer pricing, capital gains, and property taxes.