Remember that “market multiples” are only indicators of value that other businesses have sold for – they do not explain value.
Use care when selecting guideline public companies or comparable market transactions from which to benchmark your company’s market value.
Instead, develop the “intrinsic value” or “going concern value” of your business or investment opportunity integrating your:
Your road map to developing an accurate value of your business is your business plan or strategic plan.
Your forecast should cover the years necessary to reach a reasonably steady state of operations. Doing so:
What will it take for your business to stay competitive?
The present value of the company’s cash flows that occur beyond the last year of a forecast, known as the Terminal Value, is critical to estimating the full value of your business.
It’s a lot to take in. Use an expert in finance and valuation to estimate the value of your business.
You will be able to: