The Myth:
Valuation is simple math — just plug in the numbers.

The Reality:
While valuation relies on financial modeling, it also requires judgment, analysis, and experience. Risk adjustments, market dynamics, and normalization aren’t captured by a basic spreadsheet.

Why It Matters:
Undervaluing or overvaluing a business by relying solely on formulas exposes lenders, buyers, and sellers to major financial risks.

Practical Tip:
Use structured models — but always combine them with professional judgment and market understanding.