Difference between revisions of "Company Valuation"

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Company valuation basically includes the following steps:
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Company Valuation
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# Investor looks at money to raise
 
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# Investor looks at required rates of return given the investment stage:
 
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<html>
 
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<img src="/static/files/MBI/Module%2010/financingecotypes.PNG" width=500>
 
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</html>
 
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# By looking at the required rate of return the investor calculates what he wants his money to be worth in year 'n'
 
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# Then by looking at the projected value of the company from the business plan, the investor calculates what percentage of the shares he then would need.
 
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# Then the share price can be calculated from the # shares and the original required investment.
 
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Session audio:
 
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<html>
 
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<audio controls><source src="/static/files/MBI/Module%2010/M10-S5%20-%20Explaining%20Company%20Valuation.mp3"type ="audio/mp3"/></audio>
 
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</html>
 
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Process explained in
 
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<html><a href="/static/files/MBI/Module%2010/Company%20valuation.xlsx">this</a></html>
 
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spreadsheet (picture below:
 
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<html>
 
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<img src="/static/files/MBI/Module%2010/companyvaluation.PNG" width=800>
 
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</html>
 
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Company valuation 'rules of thumb'
 
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{| class="wikitable"
 
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!Type of business
 
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!Formula
 
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|-
 
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|Retail
 
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|3 times sales
 
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|-
 
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|}
 
 
[[Category:mbi]]
 
[[Category:mbi]]
  

Revision as of 19:18, 27 August 2020

Company Valuation