“There is one correct number, forever”
Value is assessed at a date and for a purpose. New information, changing expectations and different rights can produce different conclusions. A detailed model does not remove uncertainty; the assumptions and sensitivity of the result still matter.
“Losses mean no value” and “one formula fits all”
Current losses do not, by themselves, settle the value of a business. Assets, future prospects, funding needs and risk all require consideration. Equally, a revenue multiple suitable for one business may be a poor measure for another with different economics.
“Price equals value” and “valuation only matters at a sale”
A negotiated price reflects the particular parties, their bargaining positions and the transaction terms. A valuation opinion answers a defined question using a stated basis. Valuation also supports employee securities, financial reporting, reorganisations and other corporate requirements outside an outright sale.
Further reading
NYU Stern · Valuation resources (opens in a new tab)For general understanding. The appropriate method, professional appointment and regulatory treatment depend on the purpose, date and circumstances of the engagement.