I understand that EV relates to profits arising from existing business. 1. Does goodwill witihn the appraisal value relate to expected future profits from new business? 2. If not, how is goodwill valued and would expected new business be ignored in the calculation of appraisal value just as it is with EV?
Yes, the appraisal value is the value of the existing business (EV) plus the goodwill (value of future business). Best wishes Mark
