Note: A formal valuation of a business usually involves a comprehensive analysis of the cash flow generated by the business and the inherent risk factors which may affect a business valuation. The flexible design of the template also enables users to perform sensitivities on the projected cash flow and financing of a business in order to evaluate what the business is worth. The estimated business valuations are calculated by using the net present value (NPV) method with the option of including a terminal value. This template enables business owners and buyers or sellers of businesses to calculate an estimated valuation of a business or company based on the discounted cash flow (DCF) method by using the weighted average cost of capital (WACC) as a discount rate for future cash flow projections over three and five year periods.
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