Valuation

Going-Concern Value

Definition

What is Going-Concern Value?

The value of a business assuming it continues operating rather than being liquidated.

Example in practice

A profitable brand is worth more as an operating company than as separate assets.

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The price at which an asset could trade in the market at a given time.

An estimate of an asset's underlying economic worth based on expected cash flows, assets, or earning power.

An estimate of an asset's appropriate value under specified assumptions or accounting standards.

Present value of expected cash inflows minus present value of expected cash outflows.

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