Valuing a business via its income still preferred in Asean: study

Singapore

EARNINGS before interest, tax, depreciation and amortisation (Ebitda), and using the income approach are methods Asean business executives prefer when valuing a business, a joint study by the Institute of Valuers and Appraisers, Singapore (IVAS), and Ernst & Young Solutions (EY), has found.

Valuing a business via its income continues to be the top approach used by 88 per cent of respondents, with the market approach coming in a close second at 81 per cent.

When using the market method, respondents voted overwhelmingly in favour of Ebitda as the preferred yardstick of business va…