Clarification on Cost Approach

December 10th, 2009 | Income Approach & Methods | Regulatory Matters | Valuing Goodwill

I updated yesterday's post to clarify that the Cost Approach was not appropriate for valuing Intangibles unless there was value under the Income Approach – a reader caught that miss before I could get to it this AM. As to other assets like equipment, value is typically paid based on the fair market value under a Cost Approach rather than the Income Approach. In those cases one needs to look at the premise of value – as part of a going concern, as part of a mass assemblage of assets, etc.

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