Business Valuations: Income Approach (Completed)

This course provides accounting, finance, and valuation professionals with a comprehensive understanding of the income approach to business valuation. Participants will learn how to apply discounted cash flow (DCF) and capitalization of earnings methods, evaluate key assumptions, and interpret valuation results in compliance with professional standards.

The program explores forecasting techniques, discount rate development, and adjustments for risk and growth. Attendees will gain actionable insights into applying the income approach for financial reporting, tax compliance, and transaction advisory purposes.

Who Should Attend
This course is appropriate for anyone who is interested in business valuations.

Topics Covered

• Overview of business valuation approaches and standards
• Principles of the income approach
• Discounted cash flow (DCF) method: steps and assumptions
• Capitalization of earnings method and its application
• Forecasting techniques for revenues, expenses, and cash flows
• Discount rate development: WACC and alternative models
• Adjustments for risk, growth, and non-operating assets

Learning Objectives

• Explain the principles underlying the income approach to business valuation
• Apply discounted cash flow (DCF) and capitalization of earnings methods to value a business
• Develop and support key assumptions for revenue growth, expenses, and capital structure
• Calculate discount rates using weighted average cost of capital (WACC) and other models
• Evaluate adjustments for risk, growth, and non-operating assets in valuation models
• Interpret valuation results for financial reporting, tax, and transaction purposes

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None