In a valuation of a financial services company, a business appraiser estimated four values for the company using four different approaches, which he characterized as follows:

i. Discounted cash flow approach. The appraiser estimated value as the present value of projected FCFE for the next 10 years to which was added the present value of the capitalized value of the 11th-year cash flow.

ii. Market approach. The appraiser used the GPCM with price-to-cash flow, price-to-book, and price-to-earnings multiples, and made adjustments to reflect differences in risk and growth, applying the resulting multiples to the company’s cash flow, book value, and earnings, respectively.

iii. Adjusted book value approach, going-concern basis. The appraiser adjusted the book values of assets and liabilities to better reflect market values and obtained the adjusted book value of equity, which was the estimate of value based on this approach. The definition of market value used was: “Market value is the most probable price that an asset should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.”

iv. Adjusted book value approach, orderly liquidation basis. The appraiser adjusted the book values of assets and liabilities to better reflect orderly liquidation values and obtained the liquidation book value of equity, which was the estimate of value based on this approach. The definition of orderly liquidation value used was: “Orderly liquidation value [is] the price [the asset] would bring if exposed for sale on the open market, with a reasonable time allowed to find a purchaser, both buyer and seller having knowledge of the uses and purposes to which the asset is adapted and for which it is capable of being used, the seller being compelled to sell and the buyer being willing, but not compelled, to buy.”

State and explain which of the above methods would be expected to produce the lowest value estimate.