A business leader with a strong background in industrial and mechanical engineering,
Prasad Sista has served as a senior value advisor with SAP since 2017. One of Prasad Sista’s areas of expertise is value estimation using advanced methods.
Industry professionals use a wide variety of analytical techniques and technology to determine the value of businesses and other investment assets. Each type of asset requires unique approaches to valuation analysis.
When estimating the value of a business, it is first important to take stock of all of its assets. In addition to cash and stocks, these assets might include equipment, inventory, real estate, intellectual property, and even customer relationships.
In addition to present assets, both past and future earnings should be key considerations in any business valuation. Therefore, evaluators must complete comprehensive historical earnings and future maintainable earnings valuations. Businesses that cannot expect stable profits in the future may require a discount cash flow valuation, which discounts projected net cash flows at present-day values. Evaluators should also conduct relative valuations on similar businesses for comparative purposes.
