Business Valuation From Multiple Perspectives

Business appraisals use a combination of income, market, and cost methods to develop an accurate value of the business.  

Each of these methods is included in every business appraisal toolkit:

• Income / Earnings Method: Using current cap rates from publicly-traded companies in the industry, each toolkit provides a calculation of value based on the company's earnings
     Details of the Income Capitalization Method 
   
• Acquisitions of Similar Companies: Each toolkit includes details of recent purchases of comparable companies, and shows how to use this data to calculate the value of the business
     Details of the Market Transaction Method
  
  
• Publicly-Traded Comparable Companies: Each toolkit includes a roster of six to eight comparable publicly-traded companies and shows how to use this data to develop a business value
     Details of the Public Company Method
  
  
• Value of Assets:  Instructions for using historical equity investments and the current book value of equity as an indication of business value 
   

Current Market Data

With market data updated a minimum of every six months, the valuation multiples provided in each valuation toolkit implicitly consider the following factors:

• Current expectations for industry growth
• Impact of pending legislation
• Economic conditions
• Changes in interest rates / financing costs

Rule of thumb methods and generic business valuation calculators simply don't incorporate recent industry and economic conditions.  With up-to-date market data, Equitas appraisal methods always incorporate current economic and industry trends. 

Calculation Summary

Each business appraisal toolkit contains a simplified summary of all calculations required to complete a business appraisal. It is not necessary to possess a finance background to use the valuation methods presented in the toolkits.

Market research represents the most tedious component of any business appraisal.  Since summarized market data already included in each business appraisal toolkit, you only need to apply the provided valuation multiples to the historical financial results of your company.