That is the theory underlying the asset-based approaches to business valuation. Contra accounts are used in bookkeeping to record asset and liability valuation changes. Related to this, is the treatment of forecasted cashflows in equity valuation. See Clean surplus accounting, Residual Income Valuation. Return on capital employed is an accounting ratio used in finance, valuation, and accounting. This complicates analysis for both stock valuation and accounting. However, many of the valuation and risk management principles apply across all financial options. Another method used to estimate VSL is contingent valuation. The company had a $2-billion valuation by investors . They were originally used to ensure reliable facts for land valuation and taxation. There are also rules for the settlement of disputes arising over valuation of derivative positions. For example, valuation of inventories using LIFO instead of weighted average method. Prior to the official valuation, the target price of the stock steadily increased. The internal costing/valuation of inventory can be complex. We own a mix of companies whose fundamental valuation factors differ.