Appraisal is process used to determine a company’s value. Appraisals typically take into account the current financial condition of a company and the future value of cashflows. There are numerous methods applied in making appraisals. The asset method takes into account the value of the net assets held by the company to determine value. The income method relies on financial information and accounting analysis to understand and company’s current and projected cash flows and to determine the overall value of the company. The market comparison method looks at similarly situated companies (judged by industry, size, growth stage, geographic footprint and regulatory environment) and makes a comparative value judgment of the company. The goodwill method takes into account the intangible value of the company such as its public reputation and historical significance to determine value. Modern appraisal techniques rely on a mix of all of these methods as well as other proprietary methodologies to produce an appraisal. Appraisals are typically conducted by third-party appraisal firms, although internal appraisals conducted by a manager or board of directors are not uncommon. Appraisals can play a key role in determining the per-share value of the company which can in turn aid in determining prices for investment rounds and for incentive compensation plans that award equity to employees.