The Top-Down Approach to Business Valuation is an analytical tool used in business valuation modelling. Also known as the fundamental analysis, the top-down analysis involves analytics of the business entity followed by review and assessment of the key fundamental external factors which affect and impact the business into the future such as the economy, policy and regulatory environment, developments in the industry and markets. Even though the business entity has no control over these factors, they determine the fundamentals and the success or failure of the business. Through such analysis, the intrinsic value of the business entity can be deduced by the valuer. The top-down approach to business valuation is most appropriate for analysing a small number of business entities. When a large number of business entities are involved and databases are available, the bottom-up approach is the most appropriate analytical measure.