Business valuation is the process by which the financial worth of a company is determined. The main objective of the valuation process is to identify the critical value-generating areas of the business. Learn all about valuation. The three valuation methods used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions. These methods of valuation are used in investment banking, equity research, private equity, corporate development, mergers & acquisitions (M&A) and most areas of finance.