Timothy Kramer's profile

Major Valuation Methods

An MBA graduate from the University of Rhode Island, Timothy Kramer served as a portfolio manager at Ceritas Energy, LLC. Based in Houston, TX, Timothy Kramer also served as the chief commercial officer at The Blackstone Group/Kindle Energy, a company that offers various services, such as hedging and valuations, to manage and grow client portfolios.

A valuation is a process used to determine the economic value and worth of a company's asset. The following are common methods of valuation:

1. Asset Valuation

This valuation method assesses a company's asset's book value to determine its worth. It considers both tangible and intangible assets, including stocks, inventory, equipment, real estate, trademark, etcetera.

2. Discount Cash Flow Valuation

The discount cash flow method, also known as the income approach, is suitable when there are expected inconsistencies in future profit. It determines a company's value by discounting the future projected cash flow to the present value. With this method, the worth of the business in the future can also be estimated.

3. ROI-based Valuation Method

The return on investment (ROI)-based valuation method determines the company's worth by evaluating the company's profit. It also assesses the potential ROI the company offers to its investors.
Major Valuation Methods
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Major Valuation Methods

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