Income Based Approach

Income method aims to value goodwill by converting the forcast into an estimate of the value of the firm or some component of the firm. Our approach involves the production of detailed, multiple year forecasts of cash flows. The forcasts are then discounted at the firms's estimated cost of capital to arrive at an estimated present value.

Some of the key elements that we take into account while considering the valuation under this method is the key performance parameters that the forecasts are based on and the underlying assumptions on which the forcasts have been based.

 We aim to ensure that their is a link and tie up between the forcasted income statement & balance sheet.