Understanding Equity and Business Valuation

This video tutorial explains the concept of equity, its components, and how it represents the permanent capital of a business. It discusses the differences in equity for non-profit organizations and the distinction between market value and accounting value of equity. The tutorial also covers valuation methods for unlisted companies, including the asset and income approaches, and the use of EBITDA multiples to determine business value. It emphasizes the importance of understanding these concepts for business valuation and financial decision-making.

Describe the asset approach to business valuation.

What is the significance of EBITDA in valuing a business?

How can the income approach to valuation indicate the goodwill of a business?