Determine the current market value of the asset
Subtract all outstanding liabilities
Include any preferred equity claims ahead of common equity
Adjust for cash, debt, and off-balance-sheet obligations
Use the latest balance sheet as a starting point
Revalue assets and liabilities to market if needed
For a business, estimate enterprise value first, then subtract net debt
For real estate, subtract mortgage balance and selling costs from property value
For investments, multiply shares owned by current share price
For private companies, use comparable company multiples, discounted cash flow, or recent transaction prices
For personal equity, calculate total assets minus total debts
Verify the estimate with multiple valuation methods
Update the estimate regularly as market conditions change