Balance Sheet Valuation
There are several balance sheet valuation methods, including adjusted book value, book value and liquidation value. The Balance Sheet Valuation model in Provamark can be used to build each of them.
Adjusted Book Value/Market Value
The adjusted book value is determined by revising the asset’s book value to reflect the cost it would take to replace the assets in their current condition.
The book value considers the figures the figures on the company's balance sheet as fully and correctly valued. Practically this would be reflected by marking all balance sheet items as 100% of the reported value.
The liquidation value is the amount that could be realized if all assets – equipment, furnishings and inventory – were sold separately. This value is typically much lower since it doesn’t consider a company’s intrinsic value.