A ‘back-of-the-envelope valuation’ refers to a quick and rough estimate of the value of an asset or business, typically performed with minimal detailed analysis. It is often used for preliminary assessments, initial discussions, or to get a broad sense of value without investing significant time and resources.
A ‘back-of-the-envelope valuation’ can be a useful first step, and/or a helpful sanity check but it is NOT technically a valuation and would not be compliant with the AICPA® Statement on Standards for